"Without calling the overall national issue a bubble, it's pretty clear that it's an unsustainable underlying pattern. What we see are a number of forces, which are, as far as I can judge, not infinitely projectable," he said.
But when home prices slow, only those who purchased homes just as the prices begin to drop will be impacted by the decline, Greenspan said.
"The number of occasions in which an average level of prices in the United States have actually gone down are very rare," he said.
"Even if there are declines in prices, the significant run-up to date has so increased equity in homes that only those who have purchased very recently, purchased just before prices actually literally go down, are going to have problems," he said.
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SoWal Expert
"Without calling the overall national issue a bubble, it's pretty clear that it's an unsustainable underlying pattern. What we see are a number of forces, which are, as far as I can judge, not infinitely projectable," he said.... unless the home owner is highly leveraged with all the additional equity.
But when home prices slow, only those who purchased homes just as the prices begin to drop will be impacted by the decline, Greenspan said.
"The number of occasions in which an average level of prices in the United States have actually gone down are very rare," he said.
"Even if there are declines in prices, the significant run-up to date has so increased equity in homes that only those who have purchased very recently, purchased just before prices actually literally go down, are going to have problems," he said.
SoWal Insider
SmilingJoe, Absolutely correct!!!! Many homeowners have used their homes as ATMs. Rare is the homeowner that has had the discipline not to refi or pull cash. When that center console with twin Honda outboards comes a callin, who can resist?
got any pics?
SmilingJoe, Absolutely correct!!!! Many homeowners have used their homes as ATMs. Rare is the homeowner that has had the discipline not to refi or pull cash. When that center console with twin Honda outboards comes a callin, who can resist?
Or one of these
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