House Prices Are Still 10% Too High, Says Barry Ritholtz

   Barry, be honest and tell everyone that house prices are 20% too high. Maybe even 30% too high. Who's to say what's too high anyway? In the middle of a market crash, what's a stock like Pfizer (PFE) worth? Some sellers are willing to get out at any cost so figure $8 on the low end. Sure, it makes no sense but when prices are crashing through the floor, some people would prefer $8 than the possibility of $4. Others won't sell at anything below $20 while another portion of the investing public are happy with $15. This is what makes a market and what causes people to buy when others are selling.

If Barry won't say it, I'll say it. Housing prices are 20% too high. If the economy creeps along for another decade or so, Housing prices are 30% too high at this point. Anyone who's capable of buying now and acting on that impulse is trying to catch a falling knife. That's my opinion and I'm sticking by it. Link to the article below:

House Prices Are Still 10% Too High, Says Barry Ritholtz
http://finance.yahoo.com/tech-ticker/house-prices-are-still-10-too-high-says-barry-ritholtz-535388.html?tickers=&sec=topStories&pos=2&asset=&ccode=
Money-manager Barry Ritholtz has a message for the National Association of Realtors, the trade group that always puts a sunny spin on the outlook for the housing market, no matter how horrific the facts may be:
You're making the problem

Ritholtz, who runs Fusion IQ and writes The Big Picture blog, says that the NAR's happy spin is making homeowners too optimistic about the prices they'll be able to get--thus encouraging them to price their houses too high.