tag:blogger.com,1999:blog-4321422627188917599.post47994589975291327..comments2023-12-21T03:53:20.907-08:00Comments on The Liberator Today: Housing Price Snap Back - Temporary?B-Daddyhttp://www.blogger.com/profile/13880092017105841256noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4321422627188917599.post-41928338555566299202012-08-11T19:58:31.834-07:002012-08-11T19:58:31.834-07:00I think you hit the major factor by highlighting t...I think you hit the major factor by highlighting that rising prices will entice new sellers. Here in the Pacific Northwest (as in most parts of the country) many home owners are underwater on their mortgages and so can't really afford to sell. As prices rise, they'll start inverting that position for more and more current homeowners and a decidedly non-zero number of those will sell. So any increase in housing prices will be, I think, depressed mostly by the incremental reversal of underwater mortgages which, I think, probably far outstrip foreclosures and investment buying.AMBhttp://aaronmbrown.net/blognoreply@blogger.comtag:blogger.com,1999:blog-4321422627188917599.post-81863382366697717522012-08-09T00:10:19.956-07:002012-08-09T00:10:19.956-07:00A couple months age a study enlightened this quest...A couple months age a study enlightened this question. FORECLOSURE laws have made it difficult for banks to move inventory out of the shadows of forclosure. Limiting supply has slightly driven prices up, but as soon banks will find ways around the Obama policy. At that time prices will crash and it is obvious enough that prices cannot rise significantly regardless of supply restrictions.<br /><br />The market is simply smarter than government. People take into account future risk. That risk limits current home values.Doo Doo Econhttps://www.blogger.com/profile/05010201031724821495noreply@blogger.com