[shekkian]

I think the bubble just exploded yesterday.

[SengirV]

# In California, 60 percent of all new mortgages this year are interest-only or negative-amortization. These loans are gambles that prices will continue to rise.

That's all you needed to know. These people are going to lose their shirts.

[Enterprise]

Ohhhhhhh, I like bubbles.

[bkepley]

What I don't understand about all this is that if housing is such a great investment it should attract more developers which should eventually result in making it a buyers market. How come this is not happening?

[PeterPrinciple]

I remember saying in the early 80's farmland may stop inflating but will never go down in value. BOOM, it retraced to 1/3 of the high very quickly when it happened and within a few years was up to 2/3rds of the high. Now it is at or above the high again.

Housing, who knows? Most soothsayers should be shot on sight.

[PeterPrinciple]

One clear indication that residential real estate is overvalued is the relationship between home prices and rents.


CAn't remember the talk show guy from florida but his rule of thumb was that the monthly rent should be 1% of the value of the property.

[Porterville]

interest rates are low.

[Porterville]

Buy at the beach,political and geographical limited resources... including natural moratoriums from the water table.

[austinite]

There is no housing bubble, nothing to see here. Move on.

[tm22721]

Inflation will wipe out their debt as the bubble deflates.

So what's the next bubble ?

BUMP

[aynrandfreak]

Part of the definition of a bubble is that hardly anyone identifies it as such. I think we've got more upside on prices, then when most people decide there are new factors never before seen, that's when it's time to get out.

[RightWhale]

"Pain," the magazine says will result

It will be epic. There will be a third Homeric Epic. They will find Homer's remains, get his DNA, and clone him just to write it.

[sauropod]

mark