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I do not think anyone is actively investing in real estate anymore.
Maybe a few total morons. But, that is just noise on the signal.
Smart investors got out a while back (when Buffet started taking about
an unsustainable bubble). Some newbe investors are still running for
the exits.
Newspapers make a fair bit of money off their real estate ads. They
need it too, as more people are just getting their news online. So,
they tend to be real estate boosters. A conflict of interest. You
won't hear too much about the crash (that is now well underway) from
many newspapers. Not until they have run out of dodgy year-over-year
stats. How about stats for actual closings last month? Would be ugly.
John
frank b wrote:
> 6 months down the line, prices will go down definitely. However,
> changes in the RE market seem to take their sweet time. The bubbles
> that are currently happening didn't come overnight, and they won't pop
> overnight either.
>
> I keep looking at zillow to see the changes in certain markets and it's
> ridiculous. I saw the values starting to come down, only to go back up
> for a couple of months. Now it looks like they're coming back down
> again.
>
> Any way you put it, it's unsustainable. Your average American can't
> put up with a $500,000 mortgage. And this will be all too real once
> more and more loans start readjusting over the next couple of years.
>
> I do not think you will see these bubbles burst until about a year or
> two from now, when the majority of those Interest Only and special ARM
> loan suckers get a taste of reality.
>
> F.B.
>
> Mr P wrote:
> > The "elephant" is actually the huge real estate bubble that is popping
> > around the US. This appears to me to be the biggest news in real
> > estate, especially for investors, yet I read little about bubble trouble
> > on this forum. I find it hard to believe that anyone can honestly
> > brush off the fact that problems abound: mortgage delnquencies,
> > foreclosures, rising inventories, higher interest rates, slow sales,
> > flat (or falling) home prices, etc.
> >
> > It's almost lke Rome is burning, and investors are standling around
> > playing their fiddles, pretending that everything's okay.
> >
> > There are those who claim that "we're just returning to a more normal
> > real estate market", in terms of supply, demand, and price
> > appreciation. To me, it appears that the real estate market is in bad
> > shape and getting worse by the day. With "nothing down" and ARMs adding
> > to the problems, we have indeed built a very fragile house of cards.
> >
> > What do you think? What will the market be like in 6 months, or a year?
> >
> > Peppa
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Re: Why no posts about the "elephant" in the room?
