Real Estate: Is the party over?
Marrakech II
20-12-2005, 02:02
Appears that the party may be over for those crazy realestate price increase of the past couple of years. Well it was fun while it lasted. Like all parties it had to come to an end at some point. It appears from what the chart that alot of areas are going to actually see actual devaluation. My area is only going to appreciate 2.5% and 1% respectively. Hopefully it keeps up with inflation.
http://money.cnn.com/pf/features/lists/re_growth_forecast/?cnn=yes
I hope it's like that. Those prices are wonderfully gentle compared to what happened in the early 90's...if the Fed pulls off their tightening cycle without a hitch, I think most of the gains will not dissappear (along with all of the jobs created in construction). It also might redeem them a little for the dot-com bubble...
Marrakech II
20-12-2005, 02:30
I hope it's like that. Those prices are wonderfully gentle compared to what happened in the early 90's...if the Fed pulls off their tightening cycle without a hitch, I think most of the gains will not dissappear (along with all of the jobs created in construction). It also might redeem them a little for the dot-com bubble...
Well maybe percentage wise it's not as bad as the early 90's. But I would gather the sheer amount is greater. A smaller percentage but of a much greater number. Hopefully some of these Californians are not mortgaged to the hilt. Nothing like having your mortgage greater than what you home is worth.
Cannot think of a name
20-12-2005, 02:36
Ah, the rise and fall of real estate. With my dad as a developer I got to experience opulance (I had a race car at the age of 5) and crushing poverty (homeless by 21) Yay living and dieing by that market.
Bonus points went to my dad being the villian in every hackjob movie about a trend as I grew up. I began to think that a typical day at work for my dad was to go to zoning meetings where colorful groups of kids protested him and started breakdancing...