Clay Kime

Why There's No Such Thing As a Housing Bubble

Alex, Alex, Alex:

This was and is a "report" (please excuse the quotation marks, it's my style not an attempt at subtrifuge). It is a report from the foxholes on the front lines of the real estate market, not an ivory tower. It reports the conditions as we see them and makes no recommendations whatsoever. Your left-handed comments that there is an undisclosed conflict of interest and that I deliberately mis-lead the readers is unfounded, and quite frankly, offensive (as I'm sure it was intended to be.)

Bizarrely, we are in agreement about the effects of interest rates on the housing market. Interest rates have a direct correlation to "affordability." This was the focus of the report. Please read it again.

The report's conclusion that equalibrium in our market will likely be realized when prices retreat to Q1-05 levels may be wrong. We'll just have to see. But the conclusion about affordability converging on Q1-05 prices was set forth with the methodology used to reach that conclusion, namely our affordability index. Again, that "affordability index" is based on "interest rates." You are welcome to disagree with that conclusion, but you are not welcome to be nasty about it. Try some professionalism.

It also seems to have offended you that we noted that the vast majority of the sources quoted by the media are stock market analysts in connection with the housing market. But sometimes the truth hurts. It has been this way since the late 1990's so eventually they had to be right. I could forecast that a blizzard is going to hit Atlanta and, given enough time, I would eventually be able to say "see I told you so." I could forecast a major price correction in the stock market when record earnings are no longer sustainable and, given enough time, I would be right.

You did reach the pinnacle of offensiveness though, in your closing, by accusing me of putting people into houses that they could not afford, a thing I have never done nor would ever do. Where in the banana peels did you get that? What darkness lies within you to make such an unfounded and scurrilous charge? Isn't that "libel?"

Perhaps you should be banned from this blog. There are published rules of conduct.

In closing, please consider Prozac. I understand it has helped many.

Clay Kime, REALTOR(R)
RE/MAX Preferred Properties
380 Maple Ave. W.
Vienna, VA 22180
PlanToMove.com