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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (27732)	4/18/2005 7:47:10 AM
From: redfish	Read Replies (1) \| Respond to of 116555

Imo in the hot areas housing will drop even with level interest rates. These markets are being bid up by speculators and once prices level off they will unload their units on the market. For example there are reports that in Miami 85% of all condo developments are bought by speculators. If housing price increases fall to say 5% a year versus 20% a year, will the flippers stay in the game? Doubtful. So a drop in housing prices isn't necessary to prick the bubble in these areas, just a moderation in growth.