Posted on 01/03/2005 10:27:56 PM PST by Kitten Festival
Like most people with even a passing interest in matters relating to business, I have been reading articles in financial periodicals and have heard the prognostications of many economists concerning a looming “Real Estate Bubble” for at least the past three years. Regardless of the logical and empirical approach to much of the research that has been shared on this subject, my own analysis has been quite contrary to these bearish assertions. However, some recent events have begun to weaken my resolve, and lead me to believe that the residential real estate market is indeed beginning to behave in an irrational fashion that could be portending an imminent peak.
The first cautionary signal was raised when a good friend of mine told me about what has happened to the house that he bought in Sarasota, Florida this April. As he will be retiring in two years, he purchased a lot with construction plans for a lovely model in a fine, gated golf community a bit inland from the Gulf. His base price before his personal add-ons was $399,000. They have barely broken ground to lay the foundation, and a similar floor plan in this community’s next development is now going for $699,000. That is a 75% appreciation in eight months -- an annualized increase of 112.5%. Now that’s what I call a bubble.
(Excerpt) Read more at americanthinker.com ...
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http://www.freerepublic.com/focus/f-news/1313194/posts
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