November 21, 2005

The pain of buying at the top


And there's never been a top like this one

Oh, the pain to come...

But then again, didn't $700,000 for a one bedroom condo seem a bit high?


Mia Muratori knows the lasting sting of buying at the top of the market.

In 1988, she bought a house in the Midtown Brandywine section of Wilmington after relocating with her husband from New York City. Soon after, the red-hot real estate market weakened with the savings-and-loan crisis, a softening economy and DuPont Co. job cuts. In the end, it took more than a decade for Muratori to see significant price appreciation. "Not a fun experience," she said.

"We were just off the turnip truck from Manhattan," said Muratori, who is an artist. "All I can say is, you never want to do it again. I never enjoy losing money."

3 comments:

Wes D said...

Oh wait a second, I thought that real-estate never declines (grin).

At least if you listen the the NAR they would like people to think that.

I was explaining the Florida real-estate crash in the late 1920s to a friend who wholeheartedly disagreed something like that could happen again. All it took then was rampant speculation combined with a strong hurricane. We have the rampant speculation and 6 (SIX) hurricanes in the past 15 months. How long will it take to hit bottom this time?

Wes D said...

Oh wait a second, I thought that real-estate never declines (grin).

At least if you listen the the NAR they would like people to think that.

I was explaining the Florida real-estate crash in the late 1920s to a friend who wholeheartedly disagreed something like that could happen again. All it took then was rampant speculation combined with a strong hurricane. We have the rampant speculation and 6 (SIX) hurricanes in the past 15 months. How long will it take to hit bottom this time?

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