|
bostonbubble.com Boston Bubble - Boston Real Estate Analysis
|
SPONSORED LINKS
Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
YOUR AD HERE
|
|
DISCLAIMER: The information provided on this website and in the
associated forums comes with ABSOLUTELY NO WARRANTY, expressed
or implied. You assume all risk for your own use of the information
provided as the accuracy of the information is in no way guaranteed.
As always, cross check information that you would deem useful against
multiple, reliable, independent resources. The opinions expressed
belong to the individual authors and not necessarily to other parties.
|
View previous topic :: View next topic |
Author |
Message |
news
Joined: 14 Jul 2007 Posts: 0 Location: Greater Boston
|
|
Back to top |
|
|
john p
Joined: 10 Mar 2006 Posts: 1820
|
Posted: Fri Jan 29, 2010 3:08 pm GMT Post subject: |
|
|
If the unemployment stays high, this guy has a very strong point. If not, and people can afford their current homes and they have a lower current mortgage what incentive do they have to sell, other than say the house they're targetting also drops.
I think this is a velocity game.
Money times Velocity equals Price times Quantity
If you have a lot of pent up demand with people on the sidelines ready to move into the market and you don't have a lot of distressed families who are motivated buyers, prices may be sticky.
If you have a lot of motivated sellers and dont' have many buyers, that slows down velocity.
When you had everyone wanting to sell to get into a cheaper mortgage rate, that really increased velocity because it was essentially adding money to the economy. The price and quanity of homes went up because the money supply and the velocity of transactions skyrocketed. |
|
Back to top |
|
|
|
|
You can post new topics in this forum You can reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
|
Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group
|