Is There A ‘Mad Dash For The Exits’?
The New York Times has this on public awareness. “A pyramid scheme is a foolproof way to make money, until it isn’t. What is the breaking point? Probably about the time some spoilsport whispers ‘pyramid scheme,’ and there’s a mad dash for the exits.”
“Echoes of housing prices? Not exactly. Still, an almost pyramid-like frenzy has engulfed some areas in recent years, with buyers convinced that within months they will find someone who will pay even more for them.”
“If there are whispers of a ‘housing bubble’..most people still haven’t heard them. As recently as a year ago, Gallup (found) just 23 percent of Americans were even moderately familiar with the term. In the latest survey, that jumped to 40 percent.”
“24 percent now say that a bubble is likely within a year..only 7 percent expect it in their own backyard.”
And here’s some info on a pricey backyard from the Santa Maria Times. “The UCSB Economic Forecast, delivered in Santa Barbara Thursday, said that overall, the state and region’s economies are strong, and are likely to stay strong for the near future. But the Forecast Project’s 2006 report was not without a few red flags.”
“There are several unknowns, and then there is the uncertainty surrounding the national, state and local housing markets. Locally, the folks at the Forecast Project predict the housing market will remain firm. a distinct departure from recent years, when the market could only be described as meteoric.”
“The report shows a very slight movement away from a seller’s market, to one perhaps a little friendlier to buyers, but not much friendlier. Median home prices for March tumbled significantly from February figures.”
“Here in the North County, for example, the median-priced home in March was $461,700, which is down more than $18,000 from February. Countywide, the dip was even more pronounced, the March median was $750,000, down $37,500 from the previous month.”