Decline in Real Estate

[Jared I]

Radioguy, you might find this interesting about California:

http://biz.yahoo.com/bw/070405/20070405005800.html

"Foreclosures sold at auction now account for 15% of all home sales in California and continue to rise," said Sean O'Toole, CEO and Founder of Foreclosure Radar. "This isn't just a story about failing subprime lenders and their customers. At the current pace, foreclosures will be a significant part of the real estate economy. A fact which bears close scrutiny even in areas that are not yet affected."

I have heard the jealous renter thing from many people I talk with about housing. Well I own houses (just some acreage in HI actually). I always bring up cost to rent vs. buying I breakout my HP 12C financial calculator and start breaking out numbers. People just give me blank stares confronted with hard numbers, many probably wonder where I got that magic machine and how does he do reverse polish notation. I see WS as a bit overvalued, heck I remember how analyst said we were supposed to hit Dow 30k by 2012. I think Hawaii will be a trailing indicator in RE. I would agree on interest rates. Disagree on unemployment, we have lost more good paying jobs and replaced them with lower paying jobs, but that doesnt show up in the indications. Existing home sales??? Are we talking nation wide? Builders and seller are stealing from Rachael Carson on this one, "Silent Spring" ring any bells.