Best value in real estate today is in...
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in Latvia or Lithuania, Baltics.. can buy a house in Jurmala (seaside) for less then 50k
or 50 sq.m apartment for less then 20
sadly not much of good weather there..
or 50 sq.m apartment for less then 20
sadly not much of good weather there..
2000 levels! Are you joking. Gonna see 1950 levels before this shakes out. The hurt has hat started. Jesus god will Bring the pain to the Early greedy Vultures
I'm really not trying to be bearish here, but I have to say that back to 2000 levels on a long time frame chart doesn't really register that much...housing is actually still relatively expensive, and will continue to be so, unless wages/incomes rise more dramatically, or housing values fall about another 25% or so (as for raw land and developed lot values, that's highly volatile and intensely location specific, and the subject for a much lengthier debate).
When you pull up that chart, look and see what happens around 1996-1997. You get the first leg that begins to bleed into a mind-bending parabolic rise in housing values.
You still have powerful deflationary forces at work when it comes to housing, including rising unemployment, stagnant or falling wages, massive inventory levels, relatively fixed usage costs (utilities, property taxes, etc.), tight credit conditions (i.e. access to loans) and the big, barely mentioned one - many baby boomers retiring and selling assets such as homes (they're downsizing), when they outnumber those in younger generations by a wide margin.
Oh, B.S. Scottsdale is not anywhere near 2000 levels. I live here, and from 2003-2006 prices went up 50%. A pullback was to be expected. The only people who are hurting are those who bought in the euphoria in 2005-2006 and are underwater.
My wife is a realtor and during that timeframe people were making multiple offers that were just insane. Now, they are paying the price. But that is NOT true for longer term buyers.
And now, it's starting again. Try to find a good deal and there are 5 other people lined up making offers.
All investments go up and down. Euphoria and capitulation. Stocks, houses, tulips. It's human nature.
Homebuilders Buy Land After Years of Inventory Cuts (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqTrfIx0BOgs
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqTrfIx0BOgs
The following is a fantastic quote by a builder in that article that spells out one of the major risks builders face by getting too excited by any temporary demand spikes they may confuse with something of more significance:
âOne of the keys to building is to compete with the foreclosure market,â Seay said. âWe can be a little more expensive. We have to be close enough to represent a good value.â