Saturday, January 05, 2008

Subprime word of the year 2007

Sometimes you just can't make things up:

http://news.bbc.co.uk/2/hi/americas/7173110.stm

This year is starting very different than previous years. It has me wonder could we transition from fear to desperation in January or will it take just a little longer?

Either way, buyers should sit out 2008. I personally believe in sitting out 2009... but some have pointed out the market could break.

Where are we going?
I've seen many predictions, but the Irvine Housing blog seems to have one of the more rational predictions. Could it be faster? Yes. Slower? Unlikely. Less deep? Ha!

And if you go over to www.calculatedrisk.blogspot.com, you'll see they found the subprime article too (I typed this too slow.).

Got popcorn?
Neil

1 comment:

sandman said...

Neil:

but some have pointed out the market could break.
Can you elaborate on this sentence for me? I'm having trouble with "break", as in break down completely, break lower...? Thanks

I have to say, the desperation is palpable in Phoenix. Are we fully there...um, I don't know. But definitely close.

As for when to buy, I'm starting to believe that some real deals (say, no more than 10% away from the eventual bottom) may appear by EOY 2008. But they'll be few and far between, and 2009 will be the time to really begin the search (buying in '09-10). Of course, this is speculation, let's discuss this later, over turkey and stuffing ;)