We Could be in a Real Estate Bubble (2005-01-24)

by David & George Marotta

Real estate prices, especially residential, have been increasing for almost a decade. Real home prices have increased nearly 60% since 1996 – roughly triple that of previous housing booms in the late 1970s and 1980s. Home values may be peaking and ready to correct.

Read the complete column at http://www.emarotta.com/article.php?ID=109

see that in less than a year or 1 year the bubble will burst.

houses are selling so high that they dont even worth that much.

i am saving and will not buy. i will buy after the bubble burst. then the houses will be dirt cheap.

i mean just take a look at the house they arer selling now.

at 600000 for a house you get a tiny shack. with little land like say 5 feet around the house.??????????

with 600 grand i can buy a huge land and built a huge house and still have money to built a pool and if i want built a tennis court.

and all these people think they made a good investment. so hahahahha to them.

Where do you live? The Socialist Republic of California? Sheesh! That price is outrageous! Where I live, $600,000 will buy you a mansion with acres and acres of land.

Funny how government meddling with the market always seems to create scarcity. Especially in the wacko state of CA. Look what liberals and socialists have done to that state! Don't let it happen to your state! (OK, I admit it. I voted for Bush. Are you happy now? )

LeFisch

this is what i was talking about.

i live in georgia.

i bought a house bigger than what they are selling at 600000 at only 210000.

and last three years there is somany money flowing into georgia that the houses and everything goes up like crazy.

one day this will burst. trust me.

i will never buy those house. smaller than mine but sells at 600000 with like 5 feet of land around the house. i dont think i can even drive thru the slot on my lawnmover.

there is actually so much development here that there is not enough contractor to built houses.

that i think is mess up.

all these houses are not even inhabited. they merely act as vacation houses for folks up north.

i can bet you the locals cant even afford the houses now.

bush oh well no comment. or else i wont be funny anymore.

anyway hopefully by the time the bubble burst i should be able to buy a few and rent it hahaha.

Maybe where you live, I bought my house for 200K in 2004. It was built in 1998 for $180K.. The seller bought it for $196K in 2000, and put a lot of money in it. It was on the market for 1 year at $260K. They got an offer of $240K and turned it down, 2 other offers fell through and voila, here I am.

I don't think there is a bubble, there are ups and downs. But real estate is of a fixed supply and demand grows exponentially daily. So as demand grows, and supply decreases, prices go up. That's why England housing is so expensive, and it takes generations to pay for housing there. (of course the houses last generations there too)

One thing I have always been thinking is that the baby boomers are getting old, at some point our population will be in a downward trend. That should be over the next 20 years. So as the BB get older, they will move to smaller places like apartments, condos, or even just pass away. Which leaves the youth with an opportunity to purchase large housing estates at cheap prices.

What to look for is the rich family that raised a bunch of drug addict dumb asses. They inherit an estate and would rather liquidate it for cash than build up their empire, so you can cash them out for bargain rates and let them do their drugs while you live phat in their parents estate. Gen Xers fall into that "Less than Zero" (80s movie) crowd.

Fact is they say children today will not be able to make the fortunes their parents made on the average (with inflation accounted for). So that means large estates, high taxes, and broke ass kids. Maybe I'm a predator, but I see $$$$$$.

__________________
Regards,

Dewars

"You can catch more flies with honey than with vinegar. Of course, a dead squirrel works pretty good too. "

I hope there is a bust so I can get in on the action when the prices drop

Dave, I"m in the market for an apartment in Brooklyn.

Do you think I could get a good loan considering the fact that I dont believe in paying medical bills and owe more than 10k to NY hospitals? Not to mention I"ve been living overseas for 2 years and havent paid off some petty debt since then (under $1,000)

But besides that, I'd be in the market for a 2 room apartment for around $150,000 giving a 10% down payment.

If I were to invest in real estate it would be in Florida, they prices just keep going up and up especially for beach front property...

in florida they keep going up.

and they also keep rebuilding it after evey storm and hurricane and so on.

insurance for them is wooooohooooooooooo.

but contractor in florida is really happy every time there is a storm.

they get to work.
hahahahaha

hmmmmmmmmmmm................