David Berson Using Quotations

There's no sign that investor demand has softened at all. The things that would have caused a slower housing market, such as higher mortgage rates, simply aren't present, and we're now almost halfway through the year.

We obviously track the mortgage activity and understand that overall share, but we don't focus on how many homes are being purchased by investors without a mortgage. That could be a more interesting part of the housing picture.

We expect housing activity to drop about 8 percent this year -- it's primarily because of the investors' slowing purchases.

I was surprised that the sales numbers went up, even with the good weather. It doesn't change our view that the general trend in housing activity is downward.

Fortunately, continued job and income growth and the overall economy growth will help to offset the fall in housing activity that otherwise would occur.

The bulk of the decline in home sales this year will come from investors leaving the housing market. If home price gains have peaked, as we expect, and financing is more expensive, investors are going to find someplace else to put their money.

At some point in the future, California probably will have another big housing recession. It is possible at that point that prices will fall meaningfully, as in the past they have done. That is clearly a negative for people who own homes. But for those who don't own homes, that will .Ê.Ê. give them a pretty good chance to buy in the next up-cycle.