This bargain home is located in San Mateo, Calfornia. The asking price is only $ 1,200,000.00.
"There is No Housing Bubble. Nothing to see here. Lock your doors and windows. Lock down your brain. Time to move on . . ."
Posted on 04/19/2006 9:58:59 PM PDT by ex-Texan
The Commerce Department reported Tuesday that single-family housing starts fell 12% last month. Privately owned housing starts fell 7.8% to the lowest level since March 2005, while new building permits fell 5.5%. * * * Labor Department reported that wholesale prices rose 0.5% last month as oil and gasoline prices are approaching new record highs. * * *
New findings from the April Experian/Gallup Personal Credit Index survey suggest that many Americans believe [the housing bubble may burst] * * *
National Housing Bubble
Seventy-one percent of consumers believe it is very likely (24%) or somewhat likely (47%) that housing prices will collapse in housing markets across the nation as a whole within the next year, according to the April Experian/Gallup Personal Credit Index survey. * * *
Housing has been one of the key drivers of economic activity in the United States over the past several years. Building new homes not only creates jobs but also stimulates the purchase of a variety of consumer durables including appliances and home furnishings. More importantly, the growth of housing equity has had a pronounced wealth effect not only on consumer spending, but also on consumer borrowing.
Currently, the housing sector is under assault from the double-whammy of increasing interest rates and surging energy prices. * * *
The most significant impact, however, may involve the effect of a housing slowdown on the overall U.S. economy. A significant economic slowdown during the second half of this year could lay bare many of the housing finance excesses of the past several years. In turn, this could make the pessimism 7 in 10 consumers have about the potential for a bursting of the housing bubble seem prescient later this year.
View Gallop Poll Data and Graphs:
(Excerpt) Read more at poll.gallup.com ...
This bargain home is located in San Mateo, Calfornia. The asking price is only $ 1,200,000.00.
"There is No Housing Bubble. Nothing to see here. Lock your doors and windows. Lock down your brain. Time to move on . . ."
"I asked you numerous economic related questions and the dangers of Iran."
And I noted that Iran is tangential to this particular discussion. If you'd like to discuss the potential economic impact(s) of our situation with Iran, why don't you start a new thread? I'd be glad to participate.
The fund generated profit taking in todays energies should continue. This is not bearishness, just traders taking dome profit). Recall the old saying "profit taking Fridays", thus I would not be surprised if the cashing in on some well earned energy profits extends a little longer. The multiple threats to global energy supplies have not disappeared. Contingent on developments over the weekend will determine how price trending goes concerning Sunday evening's night trading desks.
Another domestic energy factor is some key refineries are halting heating fuel production and beginning their various summer driving reformulated unleaded's.
Longer term, I remain very bullish on next winter's heating oil and natural gas trends. A lot will happen effecting supplies over the summer months.
UPDATE 5-Gold, silver tumble from peaks on profit-taking
Holmes, Manager of Top-Performing Metals Fund, Sees $700 Gold
IMF says global economy needs significantly weaker dollar
Australia's National economy slowing
Record oil prices loom over low-cost airlines
Canada March Consumer Prices Rise 2.2% on Gasoline (Update2)
There will probably be some adjustment, I just don't see the big crash happening. At least not here in So. Cal.
Because you own a piece of property whose value (you believe, arguendo) is going to plummet precipitously sometime in the near future. Now I don't know if (under our hypothetical) you're still paying mortgage payments, but if you are, once the bubble bursts you're still going to be paying off the home's pre-bubble value. That's... bad. (Note also you'll still be paying property taxes based on the pre-bubble value, at least unless/until reassessed.) But even if you've got the house all paid off, it makes sense to sell simply from a profit angle.
Now, I understand you like your house and don't want to move. Simple: find a buyer who just wants rental property, and sell on the condition that you can continue living & renting there. You'll probably have to sell below current market value, of course, but what's wrong with that? The bubble's gonna burst! And then after the bubble bursts, of course, you can always buy back your home for half its current value (or whatever) and pocket the difference.
(Note: there may be some form of home-equity loan which is essentially equivalent to doing all of this, I'm simply not informed enough to know. But if so, that's the way to go.)
If you truly believe in this "bubble" stuff, you'd be foolhardy not to do something like this. You may as well just throw money away.
Aw this ole bubble ain't gonna burst ;)
Vindication is a lovely thing.
whilke I dont doubt a hosuing bubble will burst, a poll is useless. I would prefer economic and industry data
""Interest rates are certainly headed up thanks to the soaring energy costs, and the energy costs will eventually lead to increases in all sorts of other things."
that isnt the reason interest rates are rising( it is not 1974). They aer rising becasue of an increasinly tight labor market and higher capacity utlization.
If oil prices rising from $22 per barrle in 2002 to $75 today didnt cause an outbreak of inflation, a further rise wont either...ant inflation increase due to energy is transitory not sustained
""Ex-Texan, if you didn't come across like Charlie Brown, awaiting the Great Pumpkin,""
that is one of the funniest things ive ever read on here.
UK housing has been in trouble for over one year. Ditto Australia...BTW neither countries are in a recession.
over 250,000 people have moved to ATL since 2003.
In addition, I have a very low mortgage on my home, especially compared to the current value, and they continue to build like crazy all around us... we have limited buildable land here which makes the prices of the raw land continue to climb and a great influx of people from other much more expensive areas who find this affordable.. lastly, the cost of building a home is getting more expensive by the day -- cost of wood, cement, etc., and post-Katrina I don't see that getting any better.
There is one in California and in DC. My brother-in-law in Lansing reports sales are way down. Obviously real estate prices can't continue to go up forever. But will this affect markets like DFW which have never had high prices?
Nearly every large metropolitan area had more people move out than move in from 2000 to 2004, with a few exceptions in the South and Southwest, according to a report being released Thursday by the Census Bureau.
Pretty soon the only ones left living in the cities will be rich liberals and poor minorities. That ought to be an interesting dynamic.
Live in it.
Yes, but the 300 words you select, show your agenda.
Surely you can find a better example of bubble burst than: "In Los Angeles, tiny two bedroom houses in South Central are selling for $ 550,000".
Minding your own business helps the quality of your life too.
Perhaps you should take your own advice.
Go stir crap with someone else.
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