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beckycat my neighborhood stray thinks better than you. Your link says if restaurants are doing well -that's a sign that housing prices will go up right First of all there is no sign that restaurants are doing well and more importantly retail sales are declining. There will be more job losses next year - those people not only will not be buying new homes but may lose the ones they have.
Go watch a stray cat catch a fat mouse and but don't bother posting that because he is eating well tonight it will trickle up to the entire housing market - even though you will be tempted.
Your link says if restaurants are doing well -that's a sign that housing prices will go up right. First of all there is no sign that restaurants are doing well
Duh.. that's exactly what the blogger is saying. Restaurants aren't doing good and housing isn't either. Isn't that explained in plain English? The blogger says housing prices will go up after a series of events, the first one being the restaurant businesses.
I think Becky put the title just right. Her blog is analytical. She has written in plain English and I find it amuzing that people still can't understand the concept. She is not saying that housing prices are going up NOW.. She says they will eventually go up and describes HOW to predict the curve. No one here is saying we're in a turn around NOW or that restaurants are doing great business NOW. We're still sliding down.. We're going to face a few more issues and then.. ONLY THEN, we're going to see an upturn.
The problem is that a few like Ocean refuse to think and drag our economy further down. We either have over-optimists or over-pessimists.
If cash-strapped owners stop paying the mortgage it'll take about a year for the foreclosure process to finish. During that time, they're going to have a lot of extra cash since their housing expenses are $0. They'll be able to spend that money on other consumer goods - eating out, shopping, cars, etc. Restaurants would look good while this is going on, but the housing market would continue to slide.
It's also possible for consumer spending to recover as the economy picks up, and to have that spending not go back into housing. I think a lot of people are going to be more cautious about dumping money into real estate after this bubble. That's especially true for people who were personally burned by it. If people are cautious about spending money on real estate ("everyone knows that real estate is a great way to lose money") prices might not recover until long after the rest of the economy has been going strong for a while.
The real way to see that house prices will start to go up is to look at inventory and sales numbers. Those are both pretty bad right now, so it's premature to talk about a recovery. I don't see the author's predictions as being much more than hopeful thinking at this point.
If cash-strapped owners stop paying the mortgage it'll take about a year for the foreclosure process to finish. During that time, they're going to have a lot of extra cash since their housing expenses are $0.
This is absolutely wrong! Foreclosure has been on the rise for nearly two years, since the beginning of 2007, yet restaurant business has been on the decline all that time! Going by your logic, we should've seen good business at restaurants.. But we haven't! Just because people let their house foreclose doesn't mean, they have money for other things. By the time they foreclose, people are already in huge credit card debt, owe money to relatives, friends, 401K debt, etc. There is no way they are going to spend money lavishly.. They are also emotionally devastated and most of the time, divorce, lose their job, move to apartments, etc. which only increases their expenses.
In all this economic turmoil, there are some restaurants that have done good business. They are McDonalds, BK, Wendys and the fast food chains.. All the mom and pop resturants are struggling!
That really depends on where you are in the country. The restaurant business is really busy where I live.I can see that wre the houisng market is really depressed; nopt evrywhere.
That really depends on where you are in the country. The restaurant business is really busy where I live.I can see that wre the houisng market is really depressed; nopt evrywhere.
It depends on what restaurants you see.. if you're talking about McDonalds and Burger King, ofcourse they will be busy.. all the rich folks, now financially tight are going to go a step down and choose a cheaper restaurant.. you need to look at the industry as a whole.. not just Joe, the Burger shop down the street.. and also analyse the city, state data.. you never know.. maybe there's a bunch of foreclosure properties in your city and you have people coming to see'em.. hmmm.. yeah.. in that case you'll see restaurants doing good..
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