Monday, May 10, 2010
John Paulson's housing price forecast
8-12% increase for 2011
If 30% of home sales are foreclosures, and they are discounting prices by 30%, then that means foreclosures are understating the price of a home by 9%.
Therefore if foreclosures just make 15% of home sales in 2011, and they go for an average discount of just 20%, then you'll have 5% price appreciation alone.
But Paulson's pimp on housing, isn't just because he is long housing stocks; he's becoming a pimp for the Obama Administration, so the SEC will stay off his ass, at least until the November elections!
But surely his forecast will prove better than Porky Pig, who still tells us that home prices will drop another 20%.
It looks like the bull market hasn't been kind to her!
Even though in the clip above, she now tells the world that she said to cover her banking shorts in March of 2009!
Just more revisionist history by another wrong way bear!
Posted by Palmoni at 5:53 PM