Tuesday, February 17, 2009

A Fool's Game?

The following editorial was recently published in the Fresno Bee:

'A fool's game'
"I was reading your article, "Fresno Home prices below U.S. average" and saw that Patrick Conner, owner of London Properties, is quoted as saying that prices are below the national average and that we are not in Nebraska.

He is right about one thing: We are not in Nebraska, because if we were, the home prices would be even lower. He should know that ratio of home prices to income levels in the Valley are still too high.

In that same article, Robin Kane, a real estate analyst, is quoted as saying that guessing the bottom is a fool's game. Isn't this the same group of people who said that real estate prices never go down and that it was the time to buy when the market was overinflated?

I think it's a fool's game to listen to a group of people whose vested interests are pushed ahead of the public they claim to properly inform."



-Carlos Montez, Fresno


Mr. Montez, your opinion is appreciated, but we are very aware of the opportunities and affordability of our local market. As of the first of February, the nation's unemployment percentage hit 7.6%. Fresno is slightly higher, and places in the midwest, like Nebraska and Indiana, have counties where that figure is over 15%. Also, in 2002, the valley's housing affordability index (which accounts for the ratio of wages to housing costs) was at 64%. Then, our market did get out of control and by 2006 that figure dropped to 24%. However, with our market correction, and lower housing prices, the Valley's affordability index is back up to 65%. These are just the facts, your call...


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