tag:blogger.com,1999:blog-3098264341625381422.post3437812362890198788..comments2024-03-18T17:01:07.165-07:00Comments on The Provocateur: The Coming Sustained and Unnatural Real Estate Explosionmike volpehttp://www.blogger.com/profile/02999118519606254362noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3098264341625381422.post-71578148237105445602008-12-07T14:26:00.000-08:002008-12-07T14:26:00.000-08:00Administratively set interest rate is the most stu...Administratively set interest rate is the most stupid government tool. We all hear about the free market and free pricing and no capital/product barriers and so, but the most important price in economy, interest rate, is simply set by some people in FED/Bank of Canada/ECB/...<BR/>They try to "control" the economy, but all they do is to create bubbles.<BR/>JulieAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3098264341625381422.post-69253917360779586752008-12-07T07:26:00.000-08:002008-12-07T07:26:00.000-08:00I don't know who you mean by "that guy" but your o...I don't know who you mean by "that guy" but your own knowledge of real estate Mr. Ms. Anonymous isn't quite as strong as you think it is. First, those with excellent credit could and often would hold onto one house and buy up. Lot's of well off people own more than one home. By making their rate as low as it is, this gives them more and unnatural incentive to do just that. <BR/><BR/>Second, those that aren't qualified wouldn't but they shouldn't own the home they are in. They will be kept in properties at low rates artificially when most should be renting. That also creates an unnatural disequilibrium.mike volpehttps://www.blogger.com/profile/02999118519606254362noreply@blogger.comtag:blogger.com,1999:blog-3098264341625381422.post-56219503253064771642008-12-06T20:58:00.000-08:002008-12-06T20:58:00.000-08:00This guy doesn't know basic mathematics. Those who...This guy doesn't know basic mathematics. Those who won't leave their house will not sell their houses. Fine. But they won't buy a bigger house either.<BR/><BR/>Pure stupidity!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3098264341625381422.post-8745936212125824232008-12-06T18:56:00.000-08:002008-12-06T18:56:00.000-08:00Interesting analysis, more unintended consequences...Interesting analysis, more unintended consequences from the brilliant minds who go us into this mess in the first place.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3098264341625381422.post-75241055932773905652008-12-06T13:23:00.000-08:002008-12-06T13:23:00.000-08:00With all due respect, what you would do is frankly...With all due respect, what you would do is frankly irrelevant. You are talking about micro issues. I never said that everyone would stay in their home just for the low rate. I said the low rates would keep millions in their home so that there was an imbalance.<BR/><BR/>There likely will be an explosion of buying to take advantage of these rates, and that means the real estate explosion might then start early. I don't know who an "unqualified seller" is so I can't comment.mike volpehttps://www.blogger.com/profile/02999118519606254362noreply@blogger.comtag:blogger.com,1999:blog-3098264341625381422.post-5816572096720423222008-12-06T13:15:00.000-08:002008-12-06T13:15:00.000-08:00Not sure I would personally stay in a house just b...Not sure I would personally stay in a house just because I have a low interest rate. If I get a better job and need to relocate, if I get a divorce, hate my neighbor or whatever, I would sell and move. Your logic that the low cost mortgage will keep homeowners to stay and not sell... then with that same logic, millions of people will be buying today as rates fall. What about those home owners without mortgages? Do they hang on to their home because their mortgage rate is "0" percent? Maybe.<BR/><BR/>I think those "unqualified sellers" with the low interest rate will jump in to sell when they see their home prices go up.Anonymousnoreply@blogger.com