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

To: Les H who wrote (28004)	3/10/2005 5:54:22 PM
From: bentway	Read Replies (1) \| Respond to of 306849

Articles on RE speculation: washingtonpost.com "About 30 percent of condominium buyers in Washington and San Francisco and 40 percent in South Florida are obtaining mortgages for investment purposes, said Gregory H. Leisch, chief executive of Delta Associates, a real-estate research firm. In South Florida, average home prices are rising by as much as 29 percent annually; in Southern California, 36 percent; and Las Vegas, 54 percent." money.cnn.com "There is no hope of explaining home prices solely in terms of population, building costs or interest rates. None of these can explain the "rocket taking off" effect starting around 1998. So what did cause this real estate boom in so many parts of the world? My conclusion: Home-price speculation is more entrenched on a national or international scale now than ever before. In the United States before 1960, people were living in a less avowedly capitalist economy, and they were not primed to believe that their well-being depended in large measure on their property. Today, with good public information about prices -- information that might help generate irrational exuberance -- widely available, our increasing public commitment to market solutions to economic problems has led people to worry more about home prices, and hence to make them more prone to the kind of feedback that generates bubbles. Stories have abounded since 2000 of aggressive, even desperate, bidding on homes. People have been afraid that the price of housing would soon rise beyond their means and that they might never be able to afford a house, and so they have rushed in to bid. "

To: Les H who wrote (28004)	3/10/2005 6:16:36 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

That's a bizarre figure. Do you happen to remember where it came from? And what geographic area it covers? Saw some interesting quotes in today's local newspaper from a planning consultant for Fairfax County: "The next big housing boom will most likely come in Loudoun County and parts of West Virginia....With over 100,000 jobs in the Tysons Corner area, there is an imbalance between jobs and housing, which will need to be rectified in the future.......Looking at the employment graph and expectations, that area will receive significant employment growth by 2030, so unfortunately that area will most likely stay as congested with traffic." connectionnewspapers.com Check out the quote under the photo, which says 2 million more jobs are coming to the area, which will lead to higher home prices and higher tax assessments. WHEEEEE......... I gotta move somewhere else, before the county empties my bank account!