housing not bubbling

Discussion in 'Economics' started by dividend, May 10, 2006.

  1. i can count no less than 10 "house for sale" signs on the way to my postoffice (probably less than a mile away). on top of that on the way there i see 2 mercedes benz S500, 1 lexus LS430, and 1 H2. all in less than 1 mile. about 10 miles away there is a billboard ad for a bently. on the way to the gym (about 2 miles away) i can count a dozen...

    how many "for sale" signs do you see?
  2. Arnie


    I think inventory is up all over. In Vegas its doubled since 2004, "conversions" (i.e apartments converted to condo) are up 50% over last year. IN Phoenix its similar.

    There were 3 things that contributed to run up in RE prices:

    1. Low inventory

    2. Record low interest rates

    3. Strong demand due to household formation and rise in household wealth.

    Take away any 2 and I think you see a much cooler market.

    Another interesting trend is the ridiculously high prices people are paying for things like art, classic cars etc...I distinctly remember the last time that happened, we had a recession.
  3. segv


    I hope you are being sarcastic about there being no housing bubble. How does a 924sqft 2 bedroom built in 1924 with $80,000 in termite damage for $680,000 sound? Thats for sale on my street.

  4. jtmarlin


    funny you must live by me - bentleys, benz 500's , vipers, bmw's 750's, hummers's, jags are as common as Hondas - never seen so many rich people in my entire life...

  5. interesting entry on Mish's blog - excerpt:

  6. wow. i was watching 20/20 and they were saying the same thing... the guy they were interviewing (i think he was a vertern r/e flipper) "knew" the bubble was over when he held an auction and nobody, not a single person, came.

    it's spooky.. i am seeing these for sale signs ALL over the place as if all of a sudden everyone is heading for the exit.
  7. Anecdotal evidence, but a support staff person who needed to put her house on the market (in a supposedly 'hot' area) due to decrease in earnings (from health issues, etc...) was unable to sell at any price and is currently being foreclosed upon. Checked foreclosures.com for my zip code and many homes either in foreclosure or preforeclosure.

    However, you'd never know this from the movement of subprime lenders in the market lately (up).
  8. i went to foreclosure.com and in my area there is actually one with negative equity.
  9. wdscott


    within 2 blocks of my residence:

    Encino, California


    6 - 3million+ homes for sale

    8- 850,000 - 1.3 mil homes for sale

    2- homes with REO (real estate owned signs) bank foreclosed


    Nothing is selling.

  10. Having grown up in the area (Rancho St) I find it a "bit" of a surprise that the bite is on this fast. It's a desirable area -- although $3M is a big push for most of those places. What part are you in?
    #10     May 10, 2006