Wednesday, June 14, 2006

Mr. Lereah is Back Pedaling

David 'soft landing' Lereah is backpeddaling the reality of the declining housing market hits him in the face. Here is the lastest quote:

The housing standoff between buyers and sellers in South Florida will continue for another six months, and then prices in some areas will fall, a well-respected economist predicted Tuesday. In some cases prices may fall by 10 percent to 15 percent.
Adjust for inflation and you now have large real dollar price declines. Ain't looking so soft!

3 Comments:

At 5:16 PM, Blogger Wannabuy said...

This blog amuses the heck out of me. :) 10% to 15% drop? I'm thinking that's getting optimistic enough to require a wizquiz.

I enjoy your bubblemeter blog too. Keep up the good work.

Neil

 
At 7:14 AM, Blogger Coyote said...

What is missing is that with 20% equity (many have less than that) in your house that is a 50% to 75% drop in your equity. Now if the stock market fell 50% to 75% we would call that a "Crash".

Does not take a genius to realize Mr. Lereah just predicted a "Crash" of the housing market in Florida.

 
At 6:42 PM, Blogger sandiegoHICK said...

Is this Lereah guy dillusional? Even the Capt. of the Titanic had to eventually admit he 'may' have a problem!

 

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