Wednesday, April 13, 2005

"This Is The Craziest I've Ever Seen"

The housing bubble is creating little pockets of unreality, here and there. One such place, according to the East Valley Tribune, is here in Arizona. Jackie Cole, a RE/MAX agent, said "she recently sold a former rental property that was in 'terrible condition. It came out on the market at $445,000. We had people bidding against each other and the sale price ended up at $545,000. This is the craziest I've ever seen it.'"

You know what they say, they aren't making any more desert. I can guarantee you that speculators have moved into the Phoenix area if they are bidding homes up that much.

Maybe this Seattle Times piece has an explaination. "'I have no problem finding buyers, but sellers is another story,' said Neal Christensen,with Hallmark Realty. 'People are saying, 'I can get a great price on my house, but where am I going to move?''"

It is curious at this stage to see the market turn inside out, as owners can't afford to move up or don't want the property tax increase.


At 7:15 PM, Anonymous Anonymous said...

'People are saying, 'I can get a great price on my house, but where am I going to move?''"

Well, for starters, he could move to the midwest, where money still buys something. In my area of central Nebraska, you can buy the best house in a small town (pop.) 2000-4000) for $75,000-$100,000. And I'm not talking clunkers. There are a lot of 2500 sq. ft. well built used houses for sale in that price range and even lower. A guy getting $500K for his box in Seattle could settle in small town midwest America and live on the interest he makes on the remaining $400K.

At 7:22 PM, Blogger John Law said...

I'm reading lowenstein's "origins of the crash." here is a great quote.

"A mania may be defined as a mass refusal to acknowledge reason- evan a mass indifference to reason."

At 7:55 PM, Blogger Louis Pastiche said...

Pardon me if someone has previously posted this link, but I thought this article was the best expanation of the bubble I have read.

At 7:59 PM, Blogger Ben Jones said...

Thanks for the link. It looks to packed with on topic info!

At 9:46 AM, Anonymous Anonymous said...

Great link! Thanks. I love the visuals. Graphs really help.


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