Agree. Whenever this bubble finally bursts, it will fall under its own weight. Rising rates are not needed. Anyway, the 2B has been negated. It looks like a bullish cup-and-handle now.
Doesn't the fact that more houses are going up for sale then actually being sold, show some sign that the real estate market is at least cooling down. Rate hikes may cool it down faster, but i don't think anything short of an earthquake will push down prices in California
Brandof, I totally agree. Everyone is waiting for a rate increase to burst the housing bubble. But rates are going DOWN! 10yr are making lows in yields and highs in price again. Doh. The market is telling us that rates are not going up for now... So, there's gotta be another catalyst. I've been trying to figure out what that other catalyst is for the last few years.. Still not sure what will trigger the fall.. But I bet it will be something TOTALLY UNEXPECTED!! Everyone will be blindsided when it comes...
I think the real blood bath is going to be with the lenders. After all, just because your house drops in value doesn't mean you have to sell. You still have the utilitarian value in use...as a home. Agree with above post regarding land values. They have gone nuts in my market. There was an article in the paper the other day about people camping out to buy lots...and this is in Richmond, VA. http://www.timesdispatch.com/servle...18423&path=!business!metrobiz&s=1045855934857