Quote from TheDudeofLife:
I am curious. Has anyone heard anything about how the big condo property Donald Trump built in Chicago is selling? I saw that he was in town last week promoting the property. There is a glut of similar projects all over the city.
The last I heard (which was a few months ago) Trump was reneging (his legal right according to the agreement) deals with buyers who'd come in early at super low-prices. Apparently one get's in early on a "stand-by" list guarantying the developer the privilege of boasting "I'm already x% sold and I haven't even dug a hole yet." I'm sure lenders dig that shit.
Chicago's on fire. Rents are breaking out to the upside. I see homes in Wilmette listed just west of the library (so west of Green Bay) on streets like Washington going for 1.2. These homes were 300k in the mid 80's.
It's a tale of two economies. Communities of blue collar workers are struggling.
Detroit.
Cities, suburbs and resort areas of
asset holders and well-to-do professionals are thriving though. Until one sees sports salaries, medical compensation, equity markets or WFMI's same store sales even friggin'
downtick you can't say there's intrinsic weakness in higher end home valuations.
We're Brazil.
Live west of the track's for 200k and your daughter will get gang raped on her way to an underperforming school.
Live on the "good part of town" for 700k and the world's your oyster. As long as you can make the payments.
The "spread" between neighborhoods is remarkably wide.
I really think mortgage rates are going to 8% by year end. I can't see absent us being Argentina 1983 (and I give a 15% chance of 100% inflation hitting us in the next 2 years) how rates aren't going to implode both housing and stocks.
It's a tough call. My best guess is rates take everything down and millions of weak housing longs wind up BK. Then hyper inflation hit's and fungible assets compete globally while cash get's whacked.
