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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (15531)	12/19/2003 10:23:58 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

You portray solid evidence that the bubble in real estate prices is just as big in Austin TX as it is in Boston MA or Beverly Hills CA. This bubble clearly exceeds the prior bubble of the late 1980's. But I still think the comparison is correct. The new 2,800 sq ft home in an edge region of Austin TX for $170k (roughly a $150k home sitting on a $20k finished lot) is comparable to an edge city in Los Angeles with a 90 minute commute from the central core where that same $150k new home is sitting on a $300k lot minimum and thus sells for $450k. Homes in the outlying areas of Austin are 12% land and 88% building compared with 66% land and 33% building in the outlying areas of Los Angeles. In the posh areas, for every $600k home in Austin you'll probably find a similar $3 million home in Los Angeles.