Seth Jayson is a D.C. local "Fool" whose column always makes me smile:
It's still a bit of New York Times naivete, brimming with statements like this one: "Most striking, perhaps, is the fact that prices may not yet have fallen far enough for buying to look better than renting today ..."
How is that striking? Home prices have gone through an unprecedented bubble. Rents have not. Unless housing prices tumble very quickly, it will be years before buying is smarter than renting, especially in a bizarre market like the one around Washington D.C., where a run-down, 700-square-foot, 1950s crackerbox goes for $450,000.
1 comments:
Driving while looking in the rear view mirror. The mainstream media will only report the horror once we are fully immersed in it. Haven't heard much about 30%+ sales drops in Southern California have we? But this is only because this is a lagging indicator. Prices will come down.
More inventory > Less sellers > tighter credit = lower prices
Only way it can be. This train has left the station.
Dr. Housing Bubble
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