Tuesday, October 2, 2007

How low can you go?

Pending home sales were released today by the NAR and the number is a record low for August. Now right off the bat anything the NAR says cannot be fully trusted. So if they say thing are bad, multiply the "badness" by a factor of 3 and that is probably how bad things really are.

Poor pending sales mean nobody can get a mortgage anymore. The days of a $20K a year strawberry picker in Cali getting a$700K mortgage are over. Hell the days of a $75K a year accountant getting a $700K loan in Cali are over.

What amazes me is that people are still applying for these loans. Why in the hell would you want so much debt? So you can "own" a home that costs two-three times more per month than renting the exact same house? No, you are not a 4th class citizen if you rent, trust me.

And of course the NAR's favorite spokesman Mr. "yum yum" Yun says all is well, we've hit bottom, everyone go out and buy buy buy. Just ask yourself this, would you trust a spokesman from GM to tell you when you need a new car? Would you trust a spokesman from Best Buy to tell you when you need a new TV? Then why would you even pay attention to what a spokesman from the NAR has to say?

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