Plus you get those 115 degree days!
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)
The ultimate "disaster scenario" that I envision -- particularly in parts of the Northeast, is this: the housing bubble bursts at the same time property taxes are climbing through the roof. This means you'll start seeing a lot of people who can't afford to keep their homes but can't afford to sell them, either. Oh, boy -- what a nightmare that would be.
In the newer sections of N Dallas/Plano/Richardson/Allen/Frisco, you can buy beautiful homes for 77-84 per sq ft. Unheard of in other parts of major metro areas.
In the newer sections of N Dallas/Plano/Richardson/Allen/Frisco, you can buy beautiful homes for 77-84 per sq ft. Unheard of in other parts of major metro areas.
There is a difference between an adjustment and a bubble burst where the properties are seriously de-valued.
My sentiments exactly. Thanks for your confirmation as to my suggestion and thoughts but you know young people. I will certainly pass along your comments.
I've seen shacks in Phoenix for over $400,000
Plus you get those 115 degree days!
Where I'm from, I consider a 44% decline in the value in 3 years to be a "serious" de-valuation. And this is in a Southern Cal beach community! Yeah, for me personally, and for many many others in Southern Cal at that time, it was pretty friggin' serious.
Like I said in my post, however, it did obviously recover (actually several times over) so the bubble burst was temporary--probably the same as the coming bubble burst will be, I'd guess.
I really should put my money where my mouth is and buy something else, no matter how overvalued and ridiculous the properties are!
Well, it has that stupid "look at my chandelier" window, but it's not Palladian. I don't see how they ever got planning permission to build without it!
Most likely on a minimum 2-acre lot because of septic...
Hmmm....sounds plausible...
$90 million home sets US property record
A 40-acre estate in the Hamptons - the Long Island summer retreat of New York's rich and famous, has been sold for $US90 million, a new US record for a residential property.
The New York Post cited sources close to the deal as saying the purchase was made by a Swedish industrialist who has rented the estate for the past few summer seasons.
Owned by Adelaide de Menil Carpenter, heiress to the Schlumberger oil company fortune, the property's main residence is relatively modest - a three-bedroom, three-bath farmhouse.
However, the estate includes a two-bedroom caretaker's house, two guest houses, several acres of tillable farmland, a fully stocked man-made fishing pond, a lap pool and, most importantly, a substantial stretch of private beachfront.
The sale nearly triples the previous Hamptons' record of $US32 million that Seinfeld star Jerry Seinfeld paid for singer Billy Joel's mansion in 2000.....
PV isn't so bad, especially the hills between PV and Prescott. Nice area, spent a quality 5 years of my life there.
Land in the outskirts! I am seriously thinking about West Texas...OBTW, us Zonies love you Cali real estate buyers:)
It's an architectural happy meal.
LOL.
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