Buyers can be wealthy . . . or just savvy (pt. 2) "Today, we're buying houses like we buy cars, based on the (lowest) monthly payment," said Mark Eitel, managing partner of Palm Beach Gardens-based Schaffer Mortgage Corp. "But the scary thing is the average guy who works his fingers to the bone making $60,000 a year, and he cashes out his 401K to buy a home in expectation that prices will keep going up." Hunter believes buyers looking to cash in on the real estate boom should bear in mind that the nature of a bubble, housing or any other kind, is that they usually burst. "People have it in their minds that South Florida home prices always go up, but that's actually not true," Hunter said. Adjusting for inflation, he said prices of new homes actually went down in the late 1990s. Adeimy remembers what can happen when a housing bubble bursts. In the late 1970s, when he was 22 and interest rates hit 12 percent, it nearly catapulted him into bankruptcy. "I had all these properties. I got in trouble and couldn't keep up the payments," he said. He gave his houses back to the bank then, and figures if the bubble bursts this time, he can do it again. "The worst that can happen is we sell it for less than we paid," he said.
that is so funny, shes going to drop at least 50k in a yr. condos that just opened up cite, the club at brickell bay and skyline, desperately looking for buyers prices dropping every week. just imagine whats going to happen in a yr or two when 15 other buildings open up.
======== Nice repeating pattern-real estate is local [undervalued interior USA,, overvalued both coasts,FORTUNE Sept 2004] & conventional finance/creative finance sensitive =======
Slick (and deceptive) how you publish a national real estate chart. There has never been a national real estate bubble. Your chart would be representative of reality only if a person owned one house in each of the 50 states....a very smooth equity gain buffered geographically and protected from regional bubblettes. That chart however, does not look like the chart of real estate in Southern California! Or any of the (now) bubble areas!
Is this the housing equivalent of when people were buying dotcom companies which had no chance of ever making a profit? www.signonsandiego.com/news/business/20050214-0907-internetlandboom.html A California land speculator has generated a land boom in some of the most remote areas of West Texas, thanks to the Internet. San Diego-based Zarzar Land bought 8,500 acres west of Valentine in Jeff Davis and Presidio counties and began selling 10- and 20-acre plots on the eBay Internet auction site, the San Antonio Express-News reported in Monday's editions. More than 400 land parcels have been sold, sight unseen, to buyers as far away as France and Hawaii, the newspaper reported. Some land is going for less than $200 an acre. "We've done 1,000 pages of deeds in January on this property alone. Normally, 1,000 pages lasts about four months," said Jeff David County Clerk Sue Blackley. The remote, rugged acreage is home to little but cacti, mule deer, mountain lions and drug smugglers, the Express-News reported. "You can see it's just old greasewood flats â absolutely gorgeous country, but try making a living off of it," said Superintendent Glen Nix of the Valentine Independent School District, which draws 53 students from its 900 square miles. In fact, about 100 acres is required to support each cow, the newspaper reported. Try telling that to the buyers....
So I take it nothing has changed over the years in San Diego? Incomes haven't risen much, no new jobs were created, nothing to influence the price of housing has taken place? If so, then it is a bubble. Charts are supplemental resources, they don't supply enough information to make sound investments or arguments.
do u hear urself talk? Do u not understand the implications of easy credit? Ur adversaries have given u a plethora of evidence to counter ur consensus argument, yet u fail to even address it. Instead, u paint ur own picture and then gloat at ur less than remarkable effort and output. Mr. Zen
What picture am I painting? I'm just pulling headlines off the newsites. Can anyone out in the peanut gallery explain why housing is going to crash? Is it because the charts say so?