It's a year old, and look at how prophetic it has been: The global housing boom In come the waves Jun 16th 2005 From The Economist print edition The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust? According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history. Continue reading at the link below: http://www.economist.com/finance/displayStory.cfm?story_id=4079027
very detailed article..... Where my friend lives they have a house for sale, its been on the market for about 6 months. Started at $675,000, someone offered her $610,000 she refused it. Fast foward to today: open house today so i decided to take a look, house needs some updates, especially the 1970 bathroom and a kitchen stuck in 1980. PRICE: $589,000. Im sure people will come in with bids starting at $575,000
Check the housing stocks, they just don't go down. Today they are all up even though buyers are cancelling or walking away from contracts. Who is denial ???
This is the same magazine that several years ago wrote about the coming national panic when oil drops to $5 a barrel. How many rich economists do you know? Oh, and the people walking out on their deposits? Overleveraged morons that couldn't handle a shake-out. Housing markets ebbing? Unpossible! This is just like all the 100:1 forex bucketshops you see everywhere, only on a bigger scale. opm8
This article, although interesting, is over a year old. It talks about house prices cooling in Britain. Well since that article was written prices have continued their inexorable rise upwards (up 1.7% in October alone). There's little sign yet of the shit hitting the fan (unfortunately). http://news.bbc.co.uk/2/hi/business/6131416.stm