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FDIC warns of housing bubble
UPI ^ | 6/20

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)


TOPICS: Business/Economy
KEYWORDS: codswallop; fdic; housing; housingbubble; panicforfools; re; tinfoil
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1 posted on 06/20/2005 8:11:59 PM PDT by ambrose
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Bubble? What bubble?

View Home Details $330,000 1029 W 151st Street, Compton, Ca 90220 Map it! Listing provided courtesy of C-21 Action Bedrooms: 3 | Bathrooms: 2 | Sq Ft: 1,200 Comments: No comments provided.


2 posted on 06/20/2005 8:13:11 PM PDT by ambrose (.)
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To: ambrose

The housing prices in the Phoenix area are ridiculous. Californians are buying up second and third houses purely as investments. I know it's a bubble, but who knows when it will burst. It seems like it has to pop, but that still hasn't happened in California.


3 posted on 06/20/2005 8:14:47 PM PDT by inkling
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To: ambrose

Yep, I believe it. Florida will be one of the first to take a dramatic tumble. Here in the Dallas/Ft Worth area the prices have been relatively stable with small single digit increases. Florida can't keep increasing high double digits for much longer.


4 posted on 06/20/2005 8:15:57 PM PDT by devane617
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To: ambrose

Tick, tick, tick.....


5 posted on 06/20/2005 8:16:53 PM PDT by stboz
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To: ambrose

California has always been overpriced IMO and yet has never before experienced a bubble burst. I would be more worried in areas that have not usually seen housing prices as "overpriced," rather than somewhere like Cali.


6 posted on 06/20/2005 8:16:55 PM PDT by hope
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To: ambrose

My garden shed is bigger than that. And I'd sooner live in the Black Hole of Calcutta than Compton, let alone paying 300 large for the "privilege."


7 posted on 06/20/2005 8:17:30 PM PDT by IronJack
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To: ambrose
$330,000 1029 W 151st Street, Compton, Ca 90220

Is the armor plating on the inside?

8 posted on 06/20/2005 8:18:23 PM PDT by skip_intro
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To: inkling

Maybe it will pop when oil hits $70.00 barrel!

That would be interesting!

TLR


9 posted on 06/20/2005 8:18:35 PM PDT by The Last Rebel
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To: hope

When shacks in Compton are going for 300k, it is simply one speculator selling to another, and then renting out to tenants at a loss, based on the assumption that they will be able to sell the same shack for a much higher price in two years. If that isn't a bubble, I don't know what is.


10 posted on 06/20/2005 8:19:45 PM PDT by ambrose (.)
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To: inkling

Actually Phx is a long way to catching up to Cali..The last time we saw a market like this in Arizona was the late 70's. People said the same thing then. We have never experienced much of a decrease before. Just a leveling off.

BTW, some predicitions for our area are expected through 2009.


11 posted on 06/20/2005 8:20:29 PM PDT by hope
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To: ambrose

We shall see...History says otherwise.


12 posted on 06/20/2005 8:21:14 PM PDT by hope
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To: ambrose

Hey it even comes with am armored porch light and obviously electric power. Such a deal. I bet it even has indoor plumbing.


13 posted on 06/20/2005 8:25:14 PM PDT by Parley Baer
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To: ambrose

Help...have a young couple, he's transferred from GA in the navy looking in Norfolk, VA and tell me they can't find anything as a starter home for less than 350,000 and I'm finding that hard to believe...anyone here that can help with what's happening in that area. They will only be there for 3 years so why not rent is my thought...I'm afraid of the bubble problem too.


14 posted on 06/20/2005 8:25:35 PM PDT by TatieBug
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To: ambrose
Wow, and I thought prices here were getting silly. Here's what $320,000 will get you here...


15 posted on 06/20/2005 8:26:57 PM PDT by cspackler (There are 10 kinds of people in this world, those who understand binary and those who don't.)
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To: hope

That shack wouldn't rent out for more than $1100... $1200 tops... what's the mortgage payment/property taxes/insurance/maintenance on a $330k house?


16 posted on 06/20/2005 8:28:06 PM PDT by ambrose (.)
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To: ambrose

Oh my God-----that has GOT to be a joke.

Right?


17 posted on 06/20/2005 8:30:36 PM PDT by Mears (Keep the government out of my face!)
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To: cspackler

That looks like a nice house.


18 posted on 06/20/2005 8:30:41 PM PDT by ambrose (.)
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To: hope
Actually Phx is a long way to catching up to Cali.

Yes, we're a looong way from Cali pricewise. My mom bought a 160K house about five years ago in Vista, north of San Diego. 1,200 sq. ft. two-bedroom; very nice, but very small. They sold it last year for about 400K, bought a new house free and clear in Prescott Valley twice the size.

I want to move to a bigger house, but the maket is so superheated right now, nothing good seems to stay on the market longer than a day. And I don't want to move 60 miles from downtown in order to get a "deal". Life's too short to spend it in traffic! :-)

19 posted on 06/20/2005 8:31:43 PM PDT by inkling
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To: devane617

I did some searches on the Dallas area recently... I was amazed at the sheer number of really nice homes that are still available in the under 200k range.


20 posted on 06/20/2005 8:31:48 PM PDT by ambrose (.)
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