total implosion of the u.s. real estate market

Yawn...bunch of nancy's

From 1990 to 1993 my house in Cali went from $275 to $180....sold it in 2002 for right at $1mil. Had rental houses at the time that went from $120 to $600.

Current place is above 3.0 ...in ten years it'll probably go for $6.0mil or more.

Unless you're flipping RE or using it to fund your debt...it's just not something you should worry about too much.
 
Quote from 2manywhiners:

That house is definitely overpriced, but Hinsdale is an insanely expensive market. A 2,000 Sq. Ft. 60 year old victorian with 3 car runs around 1M to 2M. Hinsdale is near dead center between Aurora and Chicago.
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That's cheap compared to the B.S. going on in Canada. Look at Ft. McMurray prices. Easy 1 mil CAD for a POS 1000 sq ft shack.

Edit: It's quite easy to know when the bottom in US real estate is breached. That's when all the B.S. "flip this house" type nonsense shows disappear from TV
 
Quote from Dr. Zhivodka:

Pabst, seriously....what 's the deal with this? My granny on a fixed income lives in a shithole like this
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Yeah. That's a 150k house in StL. But look at the location, and the fact there are only 17k people in Hinsdale. It's a sleeping town for wealthy Chicago professional commuters. Makes sense.
 
What you are seeing in SF on the high end is the same in many places. The reason is definetly tied to the "two economies" to which I add other factors - inheritance, dollar concern driving hard asset purchases, possibly even recent unsettling market volatility. If you have say 10 - 20 good years left on earth, you dont give a shit whether you get it for 3M or 3.5M. Near me, availability is far more of a problem than price for this crowd.

http://www.nytimes.com/2007/10/27/b...r=1&oref=slogin&ref=business&pagewanted=print






Quote from Pa(b)st Prime:

You're talking apples vs. oranges, Cutten. Yes homebuilders have been annihilated and yes prices of NEW construction homes are plummeting. However the woes of those in Imperial Valley are having ZERO effect on prices in Santa Monica. In Manhattan prices are up on the year and the median condo value is now over 800k. Hence looking forward is not the easiest of tasks.

When you see the dollar on 40 year lows, Gold, oil and stocks on all time highs with Bond yields at 4 and a frickin half percent then YOU KNOW that real estate values are not exactly collapsing.

I follow SoFla like a hawk. I'm clueless. Prices in shit areas are weak (borrowers can't qualify and folks with $ wouldn't live there) yet homes in solid neighborhoods are almost drifting back to the 2005 highs.

Personally I think we're at the top of the asset cycle but in my near half century on this earth I've never seen a smash without rising rates as the catalyst. Interest rates reach beyond borrowing costs. Rates also effect the mindset of cash buyers vis a vis utility. If you tell a rich guy that 1mil will give him a lousy 30k a year income (these days literally "walking around" money) or for a mil he can buy a condo in South Beach then the equation takes on a new dynamic. Not to mention this novel concept, people actually enjoy spending money.

Let's face it, we have a depreciating currency that pays you a negative real rate of return. What would you do with access cash?
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Quote from vacation:

I believe the average American net worth is already negative. So your point is what?
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Might be, but it does not show in the statistics yet. And not many believe it yet.

"So what"?? Are you joking, or just totally clueless?
So what, if Americans can't afford their homes and have to dump them on the market? Or give it to their bank, which then must dump them on the market at a big loss?
So what if Americans realize they can't spend all of their income, and have to start saving too?
So what if the bursting housing bubble results in a recession?
So what if the stock market might just tank a bit when investors finally realize the dire situation?
 
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