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To: Argus

BS. I worked for a tiny real estate agency and the owner knew it was a bubble. She talked about it a year before and worked it knowing it couldn’t last.


18 posted on 02/29/2016 12:57:18 PM PST by huldah1776 ( Vote Pro-life! Allow God to bless America before He avenges the death of the innocent.)
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To: huldah1776

I knew it was a bubble too, but I didn’t expect it to CRASH and take two hundred grand off the value of my house. But I blame Clinton, Barney Frank, and the rest for that, not Trump.


21 posted on 02/29/2016 1:21:27 PM PST by Argus
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To: huldah1776
huldah1776 said: "I worked for a tiny real estate agency and the owner knew it was a bubble. "

I knew it was a bubble when I helped my daughter buy a condo in Culver City. Local prices were rising 24% per year. Realtors carried clipboards to track which units were still available because they were selling so fast.

My daughters plan when she bought was to stay in the condo for two years (to get the tax break) and then sell out and move back home. At the time she didn't realize that the tax break was pro-rated, meaning that she would get three-fourths of the benefit after 18 months.

At about eighteen months she sold the unit. The deal closed about a month before prices stopped rising and the buyers disappeared.

It should have been obvious to anyone who can do math that prices can't continue to double every three years indefinitely. They can double once in the first three years. They can just about double again in the next three years. There's no way they can double again for the entire marketplace. There simply aren't enough wealthy people to buy the houses.

24 posted on 02/29/2016 8:10:16 PM PST by William Tell
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