DislikedTell me how housing market can pick up when foreclosures are still in full swing?
Oh, I see, you think that if contracts for financing and housing are up, it is all settled?
Do you have any idea how many of those contracts are canceled before they become due?Ignored
Yea you might be right but I've been seeing jobless rate drop, confidence going up steadily leading to pile more debt on your CC which will cause demand for housing to rise.
Also foreign investors esp here in Canada are all looking to get their piece of the pie by buying US.
The cancel before coming due happened alot during Lehman not sure how often it happens now.. but I don't live there so I don't know for sure. Just looking from a birds-eye view.
Had an intense convo with a friend who lived out in LA and is here for school and he thinks the same way and shakes his head when I say we are in for a very big bull ride. It's that kind of general consensus that drives up prices when a reaction occurs because they come in flocks (first the smart money, then slowly the dumb money who finally believe the world isn't going to end)....
Job growth and confidence is crucial, and the stock market goes a long way to help in that regard. When companies become more profitable either thru playing the market or becoming more efficient they will make employees more happy by pay raises and bonuses