Posted on 05/05/2005 7:40:07 PM PDT by ex-Texan
Wall Street's blue chips end the day on a down note, as Standard & Poor's cuts its debt rating on both General Motors and Ford Motor to junk status saying their outlook is negative. GM and Ford both released statements saying they were disappointed in the S&P action and that they were committed to improving performance quickly. The Dow Jones Industrial Average plunged on the news around midday, but fought its way back to a closing loss of 44 points at 10,340. The Nasdaq closed off a fraction at 1,961.
Red Hot Real Estate Market is a "Bubble." Novices may get burned.
Hit primary link to read these reports and others that are even more depressing.
That's what people were wondering about the Internet bubble in 1997 and 1998. And 1999.
Why do you care? Buying? Selling?
Same thing happening in Seattle. I could sell my house for well more than 30% more than I paid for it just three years ago, but then where around here would I go? I can't afford anything I would want now.
Just a friendly warning. You saw it first here on FR.
NPR and the rest of the leftist media is doing everything possible to "talk down" the economy and it's not having any effect. The internet bubble occurred because there were too many dot.coms with no real business plan and no hope of profits ever. This is not the case with real estate, real estate is tangible and has always appreciated over time, this is not some theoretical model like the Klintoon "boom" was. Ford and GM are in trouble because they gave too many rebates and offered too low interest rates, but there too, people need automobiles and they will continue to buy them.
Certain parts of the RE are a bubble. Development of raw land, however, is NOT.
Soon...but it's regional & urban.
No bubble in middle America...it's a deal out here.
Real estate booms and busts have ALWAYS been regional, what we are seeing now is a nationwide boom. Certainly there will be some dips in certain regions, but it will not be nationwide. Even if interest rates go up 2 or 3 percent, they will still be a bargain compared to a generation ago. And you are correct, there is a finite amount of raw land left for development, and it will ALWAYS be a sound investment.
In real estate, what I find interesting today is the Quicken ads for interest only ads.
Talking about buying on the never-never.
Will we see a GM-Ford merger?
"This is not the case with real estate, real estate is tangible and has always appreciated over time"
Yes, it's obviously true over time, but what they're talking about is speculation by novices that may be driving prices up. Bad for the novices and bad for their lenders.
It took a decade for the real estate markets in the oil bust states to recover.
The recession of the late 90's in the Northeast caused by a real estate bubble had hard impact on homeowners and lenders. I was graduating from college at that time and a lot of fellow graduates faced dismal employment opportunities.
The real estate boom/bust in the 80's in Texas and Oklahoma was a direct result of the oil boom/bust. The real estate boom/bust in the 90's in the northeast and west coast was a direct result of the internet/high-tech boom/bust. The real estate boom we are experiencing now is due in part to low interest rates, but it is also due to the MILLIONS of baby boomers who have a lot of disposable income and are looking for second homes, they view real estate as an investment that they can enjoy, not a "get rich quick" scheme.
"No bubble in middle America...it's a deal out here."
Not where I live. Home prices are increasing faster than wages. The only new construction is on $200k to $600k homes. Even modest older entry-level-type homes are selling for over $100k. And I definitely live in middle America.
We're getting a couple thousand square feet coming in at about 125,000....at these rates, that's about 750 per month (add on taxes + insurance) at 6%. That's pretty cheap housing.
Correction: the northeast recession should have read late 80's not late 90's. I graduated in '92. Sorry about that. The dot-com thing hadn't happened yet.
The old-school terminology is "Boom-Bust". About a sixty year cycle it seems.
Okay, you had it first. There have been national boom busts. Don't have info in front of me -- one was 1870's, iirc. Another around 1930. Pretty sure there was one around 1810 or so.
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