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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (117635)	3/29/2016 2:38:07 PM
From: Elroy Jetson	1 Recommendation Recommended By John Pitera Read Replies (1) \| Respond to of 217573

The over-building we're seeing in Los Angeles is all retail buildings and apartment buildings, or buildings which combine both. Since the real estate implosion in 2008 the only reliable sector for builders was super-luxury as the fraction of one percent of buyers who are in this category continued to have a lot of spending money. The super-luxury category is now over-built in a lot of places, and low oil prices in the Middle East are hurting super-luxury in destination locations like London and New York. Outside the super-luxury segment the housing market continues to be tepid. If Trump were to be elected, I'm sure he would pull out the real estate bubble handbook used by Ronald Reagan and George W. Bush, but these sort of bubbles are devastating to the real economy. China has a similar problem having built thousands of "New Cities" which very few Chinese citizens can afford to live in, and those who could afford it don't have any desire to live in an isolated new community with few amenities.