Home Prices

4 Responses to “Home Prices”

1. Movie Guy on January 31st, 2008 5:06 am
   

   It is interesting that mortgage rates are climbing as the Fed cuts its interest rates. I’m not sure that everyone is anticipating that move. If this continues, we should expect housing valuations to continue to fall.

   Did others antcipate this?
2. Dave B on January 31st, 2008 7:24 am
   

   I didn’t realize mortgage rates where climbing.
   I guess I will have to look more closely as I would love to refinance
   to lesser years and lower my interest rate at the same time.

   Movie Guy - thanks for that information.

   Dave B
3. Schahrzad on January 31st, 2008 12:59 pm
   

   In bubbly San Diego, median home price/per capita income peaked at 9 and bottomed at 6, two times (prior bubbles). In this bubble, we peaked at 13.

   What causes bubbles? Land regulation. In CA, we get bubbles because of overregulation of builders, which causes them to fall behind in meeting demand.

   When I moved here in 1999, demand for homes was so high, they were selling the first day on the market. This was long before speculators got it. I competed for homes against other families. At that time, I saw only one new home subdivision in my school district area, so we had to compete against current housing stock.

   Demographia study substantiates this - limits on building cause high prices.

   Of course, this time the prices got higher than before, due to lax lending which fed the demand.
4. Lisa on February 1st, 2008 1:21 am
   

   Hi Movie Guy! Thanks for coming over. Dave B, maybe Schahrzad could tell us the best place to check daily mortgage rates. You might want to check our her great blog at http://www.californiahousingforecast.com/

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