Comments on: "Prices plateau as incomes catch back up" http://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/ local real estate news, statistics, and commentary without the sales spin. Thu, 11 Mar 2010 19:03:55 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: S Crowhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7832 S Crow Wed, 04 Oct 2006 01:41:25 +0000 http://seattlebubble.com/blog/?p=395#comment-7832 Plymster says: <br/><br/>"Who can you trust to correctly report data on RE?"<br/><br/>Companies that are NOT owned by mortgage or real estate brokers, or title companies. For example, like us. There ain't too many of us left.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7832','S Crow',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7832','S Crow','Plymster says: <br\/><br\/>\"Who can you trust to correctly report data on RE?\"<br\/><br\/>Companies that are NOT owned by mortgage or real estate brokers, or title companies. For example, like us. There ain\'t too many of us left.',''); return false;">Quote</a></div> Plymster says:

“Who can you trust to correctly report data on RE?”

Companies that are NOT owned by mortgage or real estate brokers, or title companies. For example, like us. There ain’t too many of us left.

Reply – Quote
]]> By: Nolaguyhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7827 Nolaguy Tue, 03 Oct 2006 22:48:19 +0000 http://seattlebubble.com/blog/?p=395#comment-7827 For some stories, the PI has a "Sound off" section that allows people to comment on the story.<br/><br/>The "Soundoff" for this story posed the question:<br/><br/>"What could or should be done about the increased gap between incomes and housing prices?"<br/><br/>Interesting responses.<br/><br/>http://tinyurl.com/jet5c<br/><br/>Like this one:<br/><br/>"I personally would love to see an out of state tax applied to ANYONE that has not lived here longer than 5 years..."<br/><br/>sigh...<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7827','Nolaguy',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7827','Nolaguy','For some stories, the PI has a \"Sound off\" section that allows people to comment on the story.<br\/><br\/>The \"Soundoff\" for this story posed the question:<br\/><br\/>\"What could or should be done about the increased gap between incomes and housing prices?\"<br\/><br\/>Interesting responses.<br\/><br\/>http:\/\/tinyurl.com\/jet5c<br\/><br\/>Like this one:<br\/><br\/>\"I personally would love to see an out of state tax applied to ANYONE that has not lived here longer than 5 years...\"<br\/><br\/>sigh...',''); return false;">Quote</a></div> For some stories, the PI has a “Sound off” section that allows people to comment on the story.

The “Soundoff” for this story posed the question:

“What could or should be done about the increased gap between incomes and housing prices?”

Interesting responses.

http://tinyurl.com/jet5c

Like this one:

“I personally would love to see an out of state tax applied to ANYONE that has not lived here longer than 5 years…”

sigh…

Reply – Quote
]]> By: Crashcadiahttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7826 Crashcadia Tue, 03 Oct 2006 22:33:12 +0000 http://seattlebubble.com/blog/?p=395#comment-7826 Once the layoffs from the REIC, along with the layoffs generated by the debt effect, kick in, then we will see that large jump in earnings.

I just didn’t realize that you could earn so much on unemployment.

Reply – Quote
]]> By: WaitinginMarysvillehttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7824 WaitinginMarysville Tue, 03 Oct 2006 20:48:44 +0000 http://seattlebubble.com/blog/?p=395#comment-7824 In order for household incomes to go up by 5% a year doesn't the rate of increase need to be more than double from what it has been the last few years?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7824','WaitinginMarysville',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7824','WaitinginMarysville','In order for household incomes to go up by 5% a year doesn\'t the rate of increase need to be more than double from what it has been the last few years?',''); return false;">Quote</a></div> In order for household incomes to go up by 5% a year doesn’t the rate of increase need to be more than double from what it has been the last few years?
Reply – Quote
]]> By: SourMashhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7823 SourMash Tue, 03 Oct 2006 20:37:52 +0000 http://seattlebubble.com/blog/?p=395#comment-7823 Since the reporter didn't provide the source for this information, here's the <a HREF="http://www.census.gov/Press-Release/www/releases/archives/american_community_survey_acs/007577.html" REL="nofollow">U.S. Census news release</a> that prompted this story.<br/><br/>It's from the 2005 American Community Survey, which is actually a pretty good data set.<br/><br/>The American FactFinder site is slowed to a crawl today, but there's a map from it that may be of interest around here:<br/><br/>Percent of Mortgaged Owners Spending 30 Percent or More of Household Income on Selected Monthly Owner Costs: 2005.<br/><br/>This map can be displayed by State/County/Metropolitan Statistical Area. Should be pretty interesting if I can ever get things to load.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7823','SourMash',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7823','SourMash','Since the reporter didn\'t provide the source for this information, here\'s the <a HREF=\"http:\/\/www.census.gov\/Press-Release\/www\/releases\/archives\/american_community_survey_acs\/007577.html\" REL=\"nofollow\">U.S. Census news release<\/a> that prompted this story.<br\/><br\/>It\'s from the 2005 American Community Survey, which is actually a pretty good data set.<br\/><br\/>The American FactFinder site is slowed to a crawl today, but there\'s a map from it that may be of interest around here:<br\/><br\/>Percent of Mortgaged Owners Spending 30 Percent or More of Household Income on Selected Monthly Owner Costs: 2005.<br\/><br\/>This map can be displayed by State\/County\/Metropolitan Statistical Area. Should be pretty interesting if I can ever get things to load.',''); return false;">Quote</a></div> Since the reporter didn’t provide the source for this information, here’s the U.S. Census news release that prompted this story.

It’s from the 2005 American Community Survey, which is actually a pretty good data set.

The American FactFinder site is slowed to a crawl today, but there’s a map from it that may be of interest around here:

Percent of Mortgaged Owners Spending 30 Percent or More of Household Income on Selected Monthly Owner Costs: 2005.

This map can be displayed by State/County/Metropolitan Statistical Area. Should be pretty interesting if I can ever get things to load.

Reply – Quote
]]> By: plymsterhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7822 plymster Tue, 03 Oct 2006 20:11:48 +0000 http://seattlebubble.com/blog/?p=395#comment-7822 <i>You would think that a university-affiliated "center" would have more intellectual integrity....<br/> ---misterbubble</i><br/><br/>Why would you think that? I'm sure most of their funding comes from the RE industry, and academics are more desperate for funding than "industry" economists. As an old professor friend of mine used to say, "We fight harder for money because there is so little."<br/><br/>It makes you wonder, though: Who can you trust to correctly report data on RE? You can't trust banks, title companies, Realtors, appraisers, government, etc, as they all have a vested interest in either more transactions, or higher RE prices. What about mortgage insurance companies?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7822','plymster',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7822','plymster','<i>You would think that a university-affiliated \"center\" would have more intellectual integrity....<br\/> ---misterbubble<\/i><br\/><br\/>Why would you think that? I\'m sure most of their funding comes from the RE industry, and academics are more desperate for funding than \"industry\" economists. As an old professor friend of mine used to say, \"We fight harder for money because there is so little.\"<br\/><br\/>It makes you wonder, though: Who can you trust to correctly report data on RE? You can\'t trust banks, title companies, Realtors, appraisers, government, etc, as they all have a vested interest in either more transactions, or higher RE prices. What about mortgage insurance companies?',''); return false;">Quote</a></div> You would think that a university-affiliated “center” would have more intellectual integrity….
—misterbubble

Why would you think that? I’m sure most of their funding comes from the RE industry, and academics are more desperate for funding than “industry” economists. As an old professor friend of mine used to say, “We fight harder for money because there is so little.”

It makes you wonder, though: Who can you trust to correctly report data on RE? You can’t trust banks, title companies, Realtors, appraisers, government, etc, as they all have a vested interest in either more transactions, or higher RE prices. What about mortgage insurance companies?

Reply – Quote
]]> By: Eleuahttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7821 Eleua Tue, 03 Oct 2006 19:56:34 +0000 http://seattlebubble.com/blog/?p=395#comment-7821 Does anyone remember how lofty NAZ stock prices just plateaued until earnings materialized and caught up?<br/><br/>Anyone?<br/><br/>Anyone at all?<br/><br/>Don't all raise your hands at once.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7821','Eleua',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7821','Eleua','Does anyone remember how lofty NAZ stock prices just plateaued until earnings materialized and caught up?<br\/><br\/>Anyone?<br\/><br\/>Anyone at all?<br\/><br\/>Don\'t all raise your hands at once.',''); return false;">Quote</a></div> Does anyone remember how lofty NAZ stock prices just plateaued until earnings materialized and caught up?

Anyone?

Anyone at all?

Don’t all raise your hands at once.

Reply – Quote
]]> By: Lake Hills Renterhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7820 Lake Hills Renter Tue, 03 Oct 2006 19:34:49 +0000 http://seattlebubble.com/blog/?p=395#comment-7820 I wonder if it's the case that there's plenty of economists that don't use such off-the-wall assumptions, but they don't get quoted by a newspaper that has much of its advertising revenue from real estate.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7820','Lake Hills Renter',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7820','Lake Hills Renter','I wonder if it\'s the case that there\'s plenty of economists that don\'t use such off-the-wall assumptions, but they don\'t get quoted by a newspaper that has much of its advertising revenue from real estate.',''); return false;">Quote</a></div> I wonder if it’s the case that there’s plenty of economists that don’t use such off-the-wall assumptions, but they don’t get quoted by a newspaper that has much of its advertising revenue from real estate.
Reply – Quote
]]> By: MisterBubblehttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7819 MisterBubble Tue, 03 Oct 2006 19:24:05 +0000 http://seattlebubble.com/blog/?p=395#comment-7819 I'm continually amazed by the number of "economists" who don't think through their arguments. Tim, your analysis is straightforward and logical, and doesn't make use of any bizarre assumptions or strangely estimated rates of growth. Why can't "local economists" do the same thing?<br/><br/>You would think that a university-affiliated "center" would have more intellectual integrity....<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7819','MisterBubble',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7819','MisterBubble','I\'m continually amazed by the number of \"economists\" who don\'t think through their arguments. Tim, your analysis is straightforward and logical, and doesn\'t make use of any bizarre assumptions or strangely estimated rates of growth. Why can\'t \"local economists\" do the same thing?<br\/><br\/>You would think that a university-affiliated \"center\" would have more intellectual integrity....',''); return false;">Quote</a></div> I’m continually amazed by the number of “economists” who don’t think through their arguments. Tim, your analysis is straightforward and logical, and doesn’t make use of any bizarre assumptions or strangely estimated rates of growth. Why can’t “local economists” do the same thing?

You would think that a university-affiliated “center” would have more intellectual integrity….

Reply – Quote
]]> By: Peter Taylorhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7817 Peter Taylor Tue, 03 Oct 2006 18:59:30 +0000 http://seattlebubble.com/blog/?p=395#comment-7817 <i>People can't refinance out of suicidal financing when they don't have any magical equity. And who wants to buy an asset that isn't appreciating at all? The soft landing just doesn't seem to add up.</i><br/><br/>That's pretty much my conclusion too. Their evaluation is based on "all things remaining equal". That is, if all economic factors remain exactly the same for the next decade, we MAY see prices plateau as incomes catch up. <br/><br/>I have a question. Who's going to buy houses while we all sit around waiting for our big pay raises to pay for our McMansions?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7817','Peter Taylor',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7817','Peter Taylor','<i>People can\'t refinance out of suicidal financing when they don\'t have any magical equity. And who wants to buy an asset that isn\'t appreciating at all? The soft landing just doesn\'t seem to add up.<\/i><br\/><br\/>That\'s pretty much my conclusion too. Their evaluation is based on \"all things remaining equal\". That is, if all economic factors remain exactly the same for the next decade, we MAY see prices plateau as incomes catch up. <br\/><br\/>I have a question. Who\'s going to buy houses while we all sit around waiting for our big pay raises to pay for our McMansions?',''); return false;">Quote</a></div> People can’t refinance out of suicidal financing when they don’t have any magical equity. And who wants to buy an asset that isn’t appreciating at all? The soft landing just doesn’t seem to add up.

That’s pretty much my conclusion too. Their evaluation is based on “all things remaining equal”. That is, if all economic factors remain exactly the same for the next decade, we MAY see prices plateau as incomes catch up.

I have a question. Who’s going to buy houses while we all sit around waiting for our big pay raises to pay for our McMansions?

Reply – Quote
]]> By: Comrade Chairman Greenspanhttp://seattlebubble.com/blog/2006/10/03/prices-plateau-as-incomes-catch-back-up/#comment-7816 Comrade Chairman Greenspan Tue, 03 Oct 2006 18:32:47 +0000 http://seattlebubble.com/blog/?p=395#comment-7816 "What I am expecting is prices are going to remain pretty much on a plateau for a period of time as incomes catch back up."<br/><br/>Well, there's a first time for everything, I guess.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('7816','Comrade Chairman Greenspan',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('7816','Comrade Chairman Greenspan','\"What I am expecting is prices are going to remain pretty much on a plateau for a period of time as incomes catch back up.\"<br\/><br\/>Well, there\'s a first time for everything, I guess.',''); return false;">Quote</a></div> “What I am expecting is prices are going to remain pretty much on a plateau for a period of time as incomes catch back up.”

Well, there’s a first time for everything, I guess.

Reply – Quote
]]>