Let’s play a game. It’s called “Spot the Fundamentals,” and the way we play it is by looking at some of the “fundamentals” to figure out which ones are responsible for our area’s high home prices. The frequent condescending argument of the cadre of Seattle area housing bulls (real estate agents, “analysts,” the press, and…
Tag: fundamentals
Rent vs Purchase: A Comparison
Also posted at Priced Out Forever. Buy If You Must. Why Must You Buy? by guest poster Eleua (with contributions and spreadsheets by Tim) Click here to download the Excel Spreadsheet that the numbers below are based on. I need to take a step back and insert a personal note. While I disagree with the…
"Market fundamentals are extraordinarily strong."
By now most of you have probably already seen today’s article in the P-I: Homes overvalued by 31.7% in city, report finds. It’s pretty much the usual shtick. “Homes are expensive here, but…” followed by lots of quotes from various real estate “analysts” and “professionals” yammering on about how wonderful the “fundamentals” here are, what…
Rent vs Purchase: Help Me Compare Costs
A few days ago, Rhonda over at RCG made a post titled The Great Rent vs. Own Debate in which she attempted to prove that even in today’s totally out-of-whack housing market, purchasing a home is still a better financial decision than renting. Obviously I disagree with her assessment. The main problem I have with…
Pop Quiz Time: Fundamentals or Speculation?
Here’s a pop quiz for you. Take a look at the following two tables and try to determine which one more closely resembles a market based on fundamentals, and which one represents a market based on speculation. Median Household Income vs. Average Rent: 2000-2005 Year Med. Income % Chg Avg. Rent % Chg 2000 $53,200…