Discussion in 'Economics' started by Copernicus, Mar 16, 2007.
How many people on this board are old enough to know where this is from?
The song has something to do with a couple of craftsman who work on wood.
When your real estate assets resemble Karen, we're almost there.
way too many people who sat on the sidelines who never bought are waiting to buy now
foreigners are buyers in the major US cities
we have uber inflation to support housing prices....
and last but not least, excessive housing market pessimism
maybe not a bottom here, but i dont think the big collapse is coming for the above reasons
when the headlines start screaming , it only means we've hit a relative halfway point...as it'll cause more panic.
I tend to agree with you. With gold at $650 how bearish can one really get?
I remember the 89-91 collapse well. There was nary a bearish comment until things had already come apart at the seems.
Mega-breaks are never telegraphed. Bull markets climb walls of worry.
Bottom line: There's more people either renting or living in pieces of shit hoping prices come in than homeowners over extended.
As far as SD. I'm curious. Rather than talk about the break in east SD County how are things in Del Mar and LaJolla. As far as I'm concerned the beach areas are the real San Diego. Inland is for posers......
That's what they have been saying: "there is no bubble, there is no bubble, there is no way real estate market will crash."
A guy can go to Atlanta, Pittsburgh, KC, Charlotte, Cleveland, Milwaukee...I could go on and on...and find a kiss ass house for 300k. Hell a million in Milwaukee will buy you an estate on Lake Michigan.
So that means throughout the country one can buy a VERY nice home (I'm not even talking about 75k starter homes in Cedar Rapids) for what a handful of 530i's would cost. Not exactly bubblesque.
So unless we're speaking about a handful of metro areas on the West Coast or North East there's really nothing even expensive about housing prices let alone bubblesque.
If you read the data compiled by Shiller, what he refers to as the most alarming trend is for non-coastal areas, in moderate income areas, such as St. Louis, Missouri, to have seen appreciation rates of about 50% to 60% in the last 3 -4 years.
I don't have the exact stats, but those are pretty close.
Unless you can show income and wage gains of 50% to 60% in St. Louis over the last 3-4 years, which I assure you that you cannot, you have a disequilibrium.
This 'bubble' is not a purely 'coastal' phenomenon, as it was in the mid to late 80s.
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