Posted on 06/20/2005 8:11:58 PM PDT by ambrose
FDIC warns of housing bubble:-
NEW YORK | June 20, 2005 8:22:17 PM IST
The Federal Deposit Insurance Corp. is warning the U.S. housing market is in danger of a serious disruption because some markets are ultra-pricey.
FDIC data indicate the nation's most overheated local housing markets now make up such a large share of the total U.S. market, a sharp fall in their values could stall or slow national economic growth, the Wall Street Journal reported Monday.
The agency found the 22 major metropolitan markets with the fastest-growing house prices account for 35 percent of the value of the nation's residential real estate but just 20 percent of its population.
It's a widespread boom and has macro implications, says Richard Brown, chief economist of the FDIC. A slowdown would not only hurt these markets, but the U.S. as a whole. (UPI)
That house is high $600's now.
That house would easily go for $1.5 million in my town in Massachusetts. I kid you not.
I don't think you can find an outhouse in Cali for 1200.00 a month.
A 2 bedroom house in Eagle Rock will rent for $1,250 a month. You won't find a 2 bedroom house in Eagle Rock going for less than $400,000.00.
http://www.recycler.com/asp/AdDetails.asp?iID=7230&sBAC=323&bSQ=0&iC=170&iSC=4730
Price $1,250.00
Headline DESIREABLE
Ad Text EAGLE ROCK, 2 bdrm+1 bath. rr house, stove, refrig, washer & dryer hook up, fenced yard, pet ok, quiet, cozy, lots of trees, must have references, avail now, 1629 Fair Park Ave, Eagle Rock 90041, $1250 per mo
Hey, that house is half a mile from where I live!
Our steady and level approach here will seem like a rock when the coasts hit trouble.
Having said that though, to what level will things go?
They demand will always be there in the Sunbelt.
I don't blame you for not wanting that drive. I don't care for Queen Creek nor Maricopa. Those places to me are a little too speculative...But, they are fetching their prices...A decent home is not on more than 24 house in some areas. I have seen as high as 90k over asking price...
I absolutely love Prescott..The prices there are higher than Metro Phx.
The problem here is demand is higher than inventory. Phx has always gotten a high volume of tranfers and they are having a hard time finding a home.
Much of the investor buying was curbed here by the homebuilders because they saw what happened in Vegas and didn't want a repeat of that here.
Interesting indeed. I live on Capitol Hill, where prices have skyrocketed. But with the suburban cul de sac commandos sitting in perpetual gridlock, we can attribute a healthy chunk of the appreciation on the Hill to location.
$70 a barrel oil? Bring it on! I'm all for encouraging the long distance commuters to swap their McMansions for a place in the city -- I may be able to afford to retire early yet.
There is a bubble. It is HUGE. But, "Don't Worry, Be Happy!" (Bob Marley tunes playing in the background).
Details on the house if anyones interested.
There's nothing special about it, just the first one I ran accross in that price range. You can get more house for the money on existing construction, new construction seems to be spiking a bit.
here in Kansas the rent for a two bedroom apt. 3 blocks from my campus is a whopping $300/month. It's a moral outrage!!
I am so glad I escaped California...
Interest only loans or reverse mortgages. That type of speculative buying is nonsense. But, I haven't seen rents that low even on a 1 bedroom apt. in California for a long time.
$300 a month? What part of Kansas?
what's the mortgage payment/property taxes/insurance/maintenance on a $330k house?Payment would be dependent on the balance after the, down. As you can see there is no maintenence. Insurance? and California property taxes are 1% of the assessed value or in this case about $3,000 a year.
The apartment next door to me has 2 bedrooms,one bath,and it is $1600.00 per month and does not include heat.
Western suburb of Boston.
What an eyesore.
I've lived here since '73 and it's just amazing to see how fast the Valley has expanded. I'm on the Mesa/Tempe border now and I don't want to move any further out.
...tick,tick,tick...I will be baack!...in about 2 Years!
Should we show thaem what a million will buy you here?
In case that wasn't sarcasm, you do realize that it's still under construction, right?
West Los Angeles, min. $600, max $1250. 65 listings... and these are the paid listings, which tend to be among the more pricey offerings.
If you want to go a little upscale, try Mariners Village... an apartment with a balcony view of the Marina del Rey (an extremely desirable area of LA) for under $1600:
http://www.marinersvillage.com/
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