Wednesday, December 1, 2010
Guff from Gahbauer
The article esentially says that he thinks seller could retreat because they think the prices are weak and seller will decide not to sell and wait for the spring. This he assumes will stop the decline in house prices. Concurrent is the fact that lenders are going to lend less due to the miserable state of finances and the less than cheery outlook. All of this means the assumed desparate house buyer will have less to choose from when buying and less money to but it with. My view: The market is poised for a crash since if people find themselves in the position of increased interest rates (for the reasons above) and falling incomes (the upcoming cuts) they will HAVE to sell if they like it or not to reduce debt.