LA to drop 12.8 percent and San Diego to drop 26.8 percent. San Francisco future predict increase in prices?
The futures market is betting on a housing bottom for Los Angeles and San Diego out to May of 2012. This prediction seems to coincide with many of the toxic mortgage reset/recast charts that we have now etched to memory. These futures contracts reflect real money at play. People that invest and understand these more “sophisticated” investment products are betting on still significant price declines for the Los Angeles and San Diego Case Shiller measures. Interestingly enough, for San Francisco the futures market is predicting increase in prices although this is by the far the most over priced market in the state. Two out of three winning bets in Vegas makes you rich.
Are you interested in losing $42,000 or $55,000 in two years because you decide to purchase today? Keep in mind these are actual money bets predicting additional price declines from where we stand today. I would venture to say that in some areas like Culver City and Pasadena price declines will be much steeper. The futures markets do not see any price increase for the next few years. So the rush to purchase a home today doesn’t seem to be grounded on any facts or market trends.
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