Home owners living in denial

[trent]

I found the following interesting article on Yahoo Finance and I completely agree with it:

http://biz.yahoo.com/ap/081110/home_value_denial.html

Most homeowners still live in fantasy land and think that their homes are worth much more than somebody is actually willing to pay for them. What happens when the majority of the homeowner herd come to realize that their homes have lost a large percentage of the paper value they once had?

[bullish]

This is a media propaganda, the housing in US has already bottomed, and here in Canada we don't have these problems. Now is a great time to buy real estate in Canada.

[trent]

This is a media propaganda, the housing in US has already bottomed, and here in Canada we don't have these problems. Now is a great time to buy real estate in Canada.

You are a typical home owner in denial :).

[Canadian]

The US real estate has not bottomed yet, as they have huge inventory and there are not many buyers out there. Until the supply and demand are in balance, forget about bottom there. As for Canada look at Toronto for example, in October 2008 the sales have fallen 38% compared to October 2007. The only way to remedy this is much lower prices.

[Steven]

I don't think we'll have a severe recession, and this will help housing prices. However some overleveraged people might have real problem, even if house prices fall just 10%.

[bullish]

You are a typical home owner in denial :).

No, I'm not. My house value is much higher that the purchase price I paid. In fact I expect the value of my house to increase a lot very soon.