10% Appreciation "More Sustainable Than 25%"
When the topic of a bubble is brought up in Seattle, naysayers point south. "Fuel for speculation of a housing bubble, but not proof of one, increased yesterday on a report that strong buyer demand has pushed Central Puget Sound prices up 10 percent or more over last spring's already high numbers."
"But those numbers were modest compared with other metropolitan areas. San Diego home prices shot up 37 percent last year. Las Vegas' soared 52 percent, and Miami reported a 26 percent. Those markets could see price corrections, some experts surmise. "
"'Nine or 10 percent appreciation is certainly more sustainable than 25 percent, so in your market, I don't think there's a bubble,' Steve Smiley said."
2 Comments:
I recently moved from Southern Coastal Maine which has experienced a huge run-up in prices as has the rest of the Northeast. (Prices doubled in my neighborhood between the early 2000's and 2005) Those in Maine would often say their prices are protected because of those moving from higher priced areas in NY and Boston. The problem is, a large percentage of the local community can no longer afford the housing stock based on current salaries, and once those from the south can no longer cash out, that upward momentum will no longer be realized. "Equity" cashed out from bubbles and moving elsewhere cause more bubbles where the economies aren't as robust, displacing many longtime residents. When are people going to get it through their heads that rapidly rising house prices aren't a positive? I'm renting and sitting on my cashed out gains.
Best blog out there Ben.
9:30 Anon,
Thanks. Good account of the Maine market. I have had a few posts on it and the price boom seems to be forcing change on the small towns, especially near the coast. Stay in touch.
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