Luskin Fights the “Perma-Bears”

A foretaste of what we optimists here at Frothing Developer can expect from the Perma-bears is intelligently discussed here:

The perma-bears want to burn me at the stake just because I noted that the sharp decline in house prices, in relation to per capita disposable income and prevailing mortgage interest rates, makes housing very affordable right now. So maybe we’re somewhere near a bottom, I said. Is that so bad?…

Bottom line? I stand by my affordability argument. I still firmly believe that home prices today, given incomes and mortgage rates, are as cheap as they’ve been in over 35 years. We may not be right at a bottom yet, but there’s one somewhere nearby. I now believe that all the more having had a taste of the backlash from the cult of bearishness. When so many people believe something with so much conviction, well, it just has to be wrong


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