Posted on 08/05/2005 6:06:11 PM PDT by ex-Texan
What I do understand is people in their twenties and thirties are buying real estate on interest only loans. First time home buyers are leaping at the chance to buy property on adjustable rate mortages. Both these recent trends are distubing to me because they suddently appeared out of the blue. Never before in history have homes been sold that way in the U.S. . . . Read More About Bubbles? . . .That ought to tell you something. Does it? Does it really?
The author just said:
If you are concerned about real estate values and feel that the bubble might burst, I'd suggest that you keep a close eye on long-term interest rates and the unemployment rate. If both of these rates start creeping up, it might be time for you to reconsider your investment in real estate. . . . Good Luck!
The author just gave you a hint about two key factors. But the real information is hiding in the open like cards left face up on the table. Take another look. Looking at the homes we live in like a speculative investment is dangerous. Never before has a nation borrowed so heavily on its future to make investments in this particular manner. The clock is ticking . . .
Bubble freak....
If I had an acre for every story in the last 10 or 15 years forcasting the bursting of the housing bubble, I'd own your state by now....or Alaska for that matter! Same thing with stories about how gold is going to break out again.
Shoot, just the bubble stories ex-Texan has posted in the last couple of months alone would make you very rich.
If you make some money fine, I was glad to be out of the rain.
Tiny bubbles
In the wine
Make me feel happy
All the time
Where's Don Ho when you need him?
If you have food in your belly, clothes on your body and a warm place to sleep - everything else is extra.
bttt
The UK housing market in down between 10-20% year to date, and as a result, personal bankrupcies are the highest since 1960. This is due to excess leverage. The same applies on this side of the pond. The Fed is only part way through their increases.
The article looks like a DNC wish list for economic disaster.
Real estate bubble don't burst, they deflate slowly for a few months, hold for a few years then expand again.
You need to expand your perameters just a wee bit more, and I'll slam you with a hell of an example.
Just take it back to the late 1980's...
> The article looks like a DNC wish list for economic disaster.
Everything else they've wished for, has inverted their
predictions. They move onto new turf.
They are trying to be the pin that bursts this bubble.
Problem is, the supply of people keeps increasing, as
do salaries, and any few speculators who get clipped
by isolated dips will be swept aside by people who just
want to live in the properties.
Next, they'll tell us that the auto market is about
to collapse.
Agreed, it will go down down down they up again years later.
It is a great investment over time, but I think the bad loans will bring large supplies back to the financial institutions in far greater numbers than ever before with these new crazy loans.
The problem with real estate invesments in the late 80's was Congress.
Congress passed major tax changes and RE investment was no longer profitable.
There's only a finite amount of land in America, and God isn't making any more. The population continues to grow. Does that not tell you something about supply and demand?
Real estate bubbles burst in slow motion. It will take years to work its way out.
"Grasshopper, is like the sound of one hand clapping . . ."
The fed is going to raise rates again. Ten times in a row.
Yep and consistently we have bought at the top and sold after a long doldrums only to see our sold property doubling in value in a year or two.
What disturbs me are the interest only adjustable rate mortgages young people are getting. When their prop taxes double and those rates go up, there is going to be hell to pay.
Adj rates have been great but I think they are risky now.
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