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Do Try This at Home: Assess Your Area's Real Estate Bubble
New York Times ^ | August 13, 2005 | DAMON DARLIN

Posted on 08/13/2005 2:01:17 PM PDT by nickcarraway

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1 posted on 08/13/2005 2:01:18 PM PDT by nickcarraway
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To: nickcarraway

""Austin, Tex""


Home prices there peaked in 2001 and have been falling ever since (ditto DFW). The reporter should get off his A@@ and do some actualy investigatation before writing a story.


2 posted on 08/13/2005 2:03:18 PM PDT by atlanta67
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To: nickcarraway

Yes, all Freepers should depend on the NY Slimes for news, financial advise and when any bubble is breaking.


3 posted on 08/13/2005 2:04:21 PM PDT by Grampa Dave (The civilized world must win WW IV/the Final Crusade and destroy Jihadism!)
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To: atlanta67
Home prices there peaked in 2001 and have been falling ever since (ditto DFW)

I find that hard to believe.

4 posted on 08/13/2005 2:08:09 PM PDT by tallhappy (Juntos Podemos!)
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To: atlanta67

I don't think they "peaked" in 2001 in DFW. I think they may only be now starting to level off. Lots of building here. Whole neighborhoods being "gentrified" and lots of restoration of old "classic" houses.


5 posted on 08/13/2005 2:13:52 PM PDT by garyhope (Islamofascism wants the death of Western civilization. Simple as that.)
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To: garyhope

I did see where Dallas home prices have been stable or falling ever since 2001. Ditto Denver though Ive read DEN's home prices hade been rising recently

Dont forget DFW's economy was hard hit by both 9-11 and Telecom bubble implosion. In 2002 DFW area had over 8% unemployment


Also just because there is home building doesnt mean prices are rising.


6 posted on 08/13/2005 2:15:36 PM PDT by atlanta67
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To: nickcarraway
The time on market is longer around here (Northern VA) because lots of overpriced junk is pouring onto the market. There are crack condos selling for $395k and 7 bedroom monsters on 0.23 acres for $1.25 million. Nobody wants junk like that so it sits on the market and drives up the average. Likewise everyone with the flexibility to do so is selling their place, nice or not and expecting the bidding wars that were occurring last spring even though they have priced their places 10 or 20% higher. A lot of these are being sold by realtors who have a whopping 3 months experience in a bubble market so you can expect a lot of mistakes.

It is still clearly a seller's market for properly priced, desirable properties. The bubble has not popped, but the prices have stopped for now, no telling what they will do this fall or next spring.

7 posted on 08/13/2005 2:19:21 PM PDT by palmer (If you see flies at the entrance to the burrow, the ground hog is probably inside)
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To: atlanta67

Impossible. Interest rates are at least a point lower than they were in 2001, which drives prices up even in static markets.


8 posted on 08/13/2005 2:25:00 PM PDT by HostileTerritory
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To: HostileTerritory

that isnt true..interest rates were falling from 1990 through 1994, and yet California's home prices fell each and every year.


9 posted on 08/13/2005 2:26:04 PM PDT by atlanta67
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To: nickcarraway

You'll know when your local market slows if you pay attention. You'll hear it at school, at church, at work..
(But you knew that - 'didn't need me chiming in.).

And Realtors don't try to keep all the information listed in the article secret. Just call one, tell them you are thinking of selling and ask them to get some comparables, and stop by some evening and give you their opinion.

They will show you every house that sold in your neighborhood, how long it was on the market, and the selling price.

It ain't no secret. (But you knew that.)

Everybody kept predicting the bubble would burst because they wanted to be the expert who was first to know and tell.

The baby boomers ARE getting older, and ARE having an impact on the market. They have gotten most of their kids through college, paid for a wedding or two, and now they want a home on the lake, on the beach or in the mountains.
That plus low interest rates has driven this market.

If and when there is a recession, there will be retrenchment in real estate. But in the long term, there is nothing better...not even gold. (And as your grandfather told you, "They're not making any more!)


10 posted on 08/13/2005 2:26:37 PM PDT by Rhetorical pi2
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To: atlanta67

The trend nationwide and statewide in 1990 through 1994 was down. That hasn't been the case from 2001 through 2004. Also, they've gotten ever more creative with financing, allowing lenders to stretch further.


11 posted on 08/13/2005 2:27:48 PM PDT by HostileTerritory
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To: nickcarraway
Appreciation in Detroit and Denver has already slowed to a crawl.

That's pretty funny; I'm surprised houses in Detroit can sell for anything at all - I wouldn't move there at gunpoint.

12 posted on 08/13/2005 2:28:06 PM PDT by Hank Rearden (Never allow anyone who could only get a government job attempt to tell you how to run your life.)
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To: Hank Rearden
I wouldn't move there at gunpoint.

That's how things generally happen in Detroit.

13 posted on 08/13/2005 2:29:18 PM PDT by nickcarraway (I'm Only Alive, Because a Judge Hasn't Ruled I Should Die...)
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To: tallhappy

The only place real estate prices may have peaked in 2001 and have fallen since.....Love Canal, New York.


14 posted on 08/13/2005 2:29:36 PM PDT by DCPatriot
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To: HostileTerritory

but your statement was home prices can never fall (impossible you said) when interest rates are falling or at least low. Well i gave an example where they did.

Austin and Dallas have had steady or slightly falling home prices since their peak in 2001.

I know it is unpopular to say here on FR that there isnt a housing bubble nationwide, but the fact is much of the country has seen home price appreciation in the mid single digits such as Atlanta. Other markets like Denver experienced falling home prices from 2001-2003 or so. Some like St Louis and Cincinatti are stagnant with only very low housing appreciation.


15 posted on 08/13/2005 2:32:10 PM PDT by atlanta67
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To: atlanta67

Check out the data for Austin:

http://recenter.tamu.edu/data/hs/hs140b.htm

Prices in 2002 were considerably higher than 2001, and have been steady or risingly slightly since then once you account for seasonal fluctuations. The volume of sales is up significantly since 2002.


16 posted on 08/13/2005 2:40:25 PM PDT by HostileTerritory
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To: atlanta67

Prices in Dallas are well above where they were in 2001.

http://recenter.tamu.edu/data/hs/hs200b.htm


17 posted on 08/13/2005 2:41:30 PM PDT by HostileTerritory
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To: HostileTerritory

there isnt much stability in this chart. Prices are all over the place since late 2001


18 posted on 08/13/2005 2:42:24 PM PDT by atlanta67
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To: HostileTerritory

looks like only in the last couple of months have home prices been rising consistently in dallas.


I know your point is that there is a nation wide bubble, but there isnt


19 posted on 08/13/2005 2:44:01 PM PDT by atlanta67
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To: atlanta67
looks like only in the last couple of months have home prices been rising consistently in dallas.

June is the peak of sales. June 2005 was significantly higher than June 2004 was significantly higher than June 2003.

I know your point is that there is a nation wide bubble, but there isnt

I don't believe there is a nationwide bubble in real estate. I think that the bubble in some markets has spread further than people expected, and that the effects of creative financing and real estate mania have affected markets where a bubble isn't visible.
20 posted on 08/13/2005 2:48:37 PM PDT by HostileTerritory
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