The Barron’s cover story this week is about how Home prices are heading higher. It is their third Housing Bottom story since 2008.

I will have much more to say about this tomorrow, but until then, here are some past discussions on the topic.

Why Barron’s Housing Cover Is So Terribly Wrong (July 12th, 2008)

Barron’s: Home Prices Are About to Bottom (take 2) March 17th, 2012

Yeah! The Housing Bottom Is Here! (PWBC™)  (May 31st, 2012)

Housing Bottom Callers Redux (June 2nd, 2012)

The details of the Barron’s article are worth reading.  Tune in tomorrow for a solid fisking . . .

 

Sources:
Happy at Last
JONATHAN R. LAING
Barron’s September 8, 2012  
http://online.barrons.com/article/SB50001424053111904294104577633883367012476.html

Category: Financial Press, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

13 Responses to “Barron’s: Home Prices Heading Up 7%”

  1. Relative to PacificNW (Niketown) area: have noticed more ‘sale pending’ notations on existing house listings. Oh, and buildouts of long dormant (new house) developments are on the uptick.

    Meanwhile: buildouts booming in Bakersfield (LAtimes), what’s next? Modesto/Fresno?

    OT Subprime autonation: http://www.nakedcapitalism.com/2012/09/qs.html#e2TrMRbxgjHLjUmS.99

  2. Orange14 says:

    They are up that much this year in suburban Washington DC but this area has always been the exception to the rest of the US in that we didn’t crater following the 2008 meltdown.

  3. Tim says:

    Fittingly, the cover picture of the house shows the front door as a big mouth with enormous teeth :-8

  4. ConscienceofaConservative says:

    Barry Ritholtz,
    This is what bothers me.
    Despite bank balance sheets we see continued and inappropriate lending in support of autos, student loans and pay day lending. So who is to say a change in regulatory attitudes and standards in mortgage debt could not reflate housing to bubble territory. History has shown that if borrowers don’t have skin in the game, or are desperate they’ll take on any debt. We do have Larry Summers saying mortgage standards need to come down.

  5. BuildingCom says:

    I wonder how much NAR paid Barrons to write garbage like this?

  6. mpappa says:

    Where is the third party data to support these arguments? An economist from the Nat. Assn. of Realtors will not convince me. I also do not believe the shadow inventory decline is enough to increase prices as real foreclosure have yet to hit the market. So short sales are on the decline but with 6% of the homes underwater relative to a historical 2%, the market is still on very shaky ground and real foreclosures will replace the short sales and those resales will happen at depressed prices. The market could rise again but not at a national 10% rate. Maybe in the hot areas like North Dakota and Midland Texas but they are out liars. Sorry to say, but Real Estate agents play a role in keeping prices stable in their market but they can’t manipulate the entire country when unemployment is still above 8% and the demand for home ownership is not in line with what lenders what to see.

  7. ConscienceofaConservative says:

    How can one take Barrons serious when they write(emphasis mine between the asterisks)

    Even more upbeat is Lawrence Yun, chief economist at the National Association of Realtors, who, ******unlike some of his predecessors, is more a sober analyst than a cheerleader for the real-estate brokerage industry*******. Yun is heartened by several factors that have been showing up in NAR monthly sales figures and median home-price trends.

  8. Nuggz says:

    “Barron’s: Home Prices Heading Up 7%”

    That’s true. Sorry Barry, but you missed this one. It’s time to move on.

    I also understand that there are some people who are going to vote for Romney even though he’s a phony prick.

    Some things never cease to amaze.

  9. philipat says:

    No, they will be wrong on this call again for a number of reasons already identified in this very Blog. There will be a new wave of foreclosed properties from the Banks. AT present, prices are reflecting a higher mix of non-foreclosed properties because of a temporary lull in foreclosure sales, which makes prices appaear artificially higher. However, there is a commensurate build in “Shadow Inventory” which the Banks are now releasing and which, because of lower prices, will again push average prices down again. IMHO we will be declining another 10-15% from here.

  10. BuildingCom says:

    Sorry “Nuggz” but CS shows prices up a mere 0.5% YoY. Inflation adjusted, they’re negative.

    Nice try though.

  11. maspablo says:

    If lawerence Yun is “sober” My father is the biggest teetoaler ever and that empty 12 pk of Utica club magically disappeared!!

  12. BennyProfane says:

    Yeah, I approached this article with an open mind, but it closed up tight when I read that “sober” description of Lawrence Yun. Nothing to see here, just move on, five to ten more years…….

  13. Existing Home prices are running $13k over last Summer. Y/Y has been positive since March. New Home prices troughed in 2009.

    Realty Bubbles Monitor: http://trendlines.ca/free/economics/RealtyBubbleMonitor/RealtyBubbleMonitor.htm