"The Numbers Say It All"
Thanks to the reader who posted this SFGate graph of the median income needed to buy a home in San Francisco.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole. ATTENTION: Backup Blog at: http://thehousingbubble2.blogspot.com/
Sunday, April 17, 2005
Previous Posts
- Newspapers Change Their Tune
- Too Many Condos In Myrtle Beach?
- "Snooker The Suckers, Then Laugh"
- Flashback: Don't Bet The House
- Economist On "Nationwide Tour"
- "Unaffordable Housing" Needed: Economist
- Housing Boom Turning Into Bust
- Big Losses For Housing Sector
- Lawyer Leaves Sinking Ship
- What Will You Do About The Housing Bubble?
Links
- HOME
- 10 Year US Bond
- Fannie Mae
- National Mortgage News
- Origination News
- Demos
- Mortgage Bankers Assoc.
- OFHEO
- Center for Economic and Policy Research
- Fitch Ratings
- Realty Times
- Inman News
- US Treaasury
- BlogKits-Building Blog Relationships
- House Price Crash UK
- The Money Files
- San Diego Real Estate Chrono-Collapsometer
- Bay Area Housing Crash Continues
- HouseBubble.com
- Vancouver Housing Market Blog
- housingbubble.com
7 Comments:
"I don't see a lot of risk," said Gabriel, who is in the midst of buying a second home in Oakland for $633,000. "It might flatten out for a while, but it won't crash. It's not like my other property will go down to $215,000 or something."
"I don't see a lot of risk," said Gabriel, who is in the midst of buying another 100 shares of Nortel for $120 a share. "It might flatten out for a while, but it won't crash. It's not like my Nortel stock will go down to $2 or something."
See? It really is just like the stock market.
Got a big laugh out of that comparison. What is the real downside. Gabriel's $660k house probably won't go down to $6,600, but at some point (when fundamentals kick back in, as they always do, and sometimes overshooting in the process) the rental value of the place will act as the price base. If the rental income would only support a $500k value, is Gabriel screwed. What's the tipping point for these folks?
J. Stanley: your blog looks interesting, but you need to allow anonymous (non-Blogger) comments, and you need an RSS feed! I think the explosion in housing bubble blogs must surely be an indicator that we're close to the top....
Answer to the last two comments:
1. The 'tipping point' is when either credit dries up, there are no new buyers to support prices or a natural disaster hits.
2. I second the notion of adding an RSS feed. Great page.
-Generic
J Stanley,
(It's good to see this time around the government has decided to position itself not to bail out the landslide of future banckruptsys)
If the US government bailed out Mexico twice, NY city, Chrysler, 1,000 S&L's, etc, don't you think they'll bail out Fannie and Freddie. Besides, there is no other entity that will accept the load. Type "Resolution Trust Corporation" into Google. The US has done this more than once before. Thanks for commenting.
J Stanley,
The S&L bill was $500 billion, after it was raised several times. And that was 1989 money. A trillion isn't out of the question.
We are all going to pay, lets remember who got us there. Cheers!
I live in SF. I was talking to a friend while our kids were at a birthday party this weekend and he told me about the absolutely crazy prices homes are going for in his neighborhood.
The home is not in good condition, build around 1940, with no updates since the 70s. There are foundation problems and the estimates were that it needed about $100k in foundation work [minimum].
So it was listed at $825k and after showing it for a few weeks, the offers came in. It sold for $1.3M.
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