by Calculated Risk on 6/27/2005 02:57:00 PM

The LA Times publishes a small community newspaper for my neighborhood called the Daily Pilot. The business section of today's Pilot featured an article on housing. What caught my eye were some quotes from local real estate professionals.

"Much of the appreciation we're seeing is permanent."

John Burns, president of Irvine-based John Burns Real Estate Consulting June, 2005

Compare to:

"Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."

Irving Fisher, Ph.D. Economics, Oct. 17, 1929

But far more discouraging are the comments attributed to Bill Cote of the Cote Realty Group. He doesn't believe there is a bubble, but he also apparently wants to withhold information from the home buying public:

[Cote]...is bothered by the potential of academics forecasting real estate deflation to discourage the public. He said it's tough for general audiences to discern between the various forecasts that are out there.

"It affects the confidence of the market -- people start talking," Cote said. "People can't tell unless they're sophisticated in economics."

"People start talking ..." We wouldn't want that to happen.