Housing Market – Years to correct?

Last week’s new home sales report has folks talking again about the state of the housing market.  Here is a link to a quick video and article on the topic:  http://finance.yahoo.com/blogs/daily-ticker/housing-market-sucks-could-years-correct-20110324-080754-787.html

A quote from the article:
But all the negative housing numbers this week have some contrarians wondering: Have we hit a bottom? Gary Shilling, of A. Gary Shilling and Co., says, “no.” He told The Daily Ticker earlier this week that prices have another 20 percent to fall and that prospective buyers should hold off for a while.

Double Dip

I think we will see double dip in several markets this year.  There are several areas where the supply continues to increase.  Below is a link to a good graph on the San Diego market.  Don’t try to time things.  When the numbers make sense from a cash flow perspective….buy!

http://pragcap.com/san-diego-double-dip-well-underway

Kids and Allowances

The topic of kids and allowances is always a difficult topic.  There is no “right” answer.  You just need to find a system that works for you.  I personally agree with the article below in that we don’t pay kids for chores or grades.  They are part of the family and have duties that aren’t compensated just like all of us.  However, I do think it is important to for kids to earn/receive money that they can use to spend on things they want.  I want my kids to make mistakes with money and learn lessons like spending priorities while the amounts are small and the damage can be contained.

A good article on kids and allowances:

http://news.yahoo.com/s/usnews/20110112/ts_usnews/thesmartwaytopaykidsanallowance