Are your friends and neighbors now aware that the housing bubble has burst, an historic housing crash is underway, and that their home is depreciating more everyday?
September 20, 2006
HousingPanic Stupid Question of the Day
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59 comments:
nope. complete denial. encouraged to hear one of our old neighbors sold her house for 475k. we both bought into that new neighborhood for 200k in 2000. i sold in 2003 for "only" 350k. this world has gone mad.
Still complete denial.
I have been telling coworkers of the bubble for over a year now. I send them links to new articles. Even with all the supporting news as of late, they still deny the bubbles existence.
Its like they took a dump on the floor and while you are rubbing their nose in it, they tell you it smells like sweet chocolate.
We are truly a nation of idiots.
"Prices are coming down a bit." they said. "But then we'll return to normal! You can keep FLORIDA down for long!!! This will only ne a sligh correction!"
I highly doubt it, prices here are still way to high for the $36,000 average salary in Tampa Bay.
I remember the good ol' days of 2000 & 2001 when buying meant you would own it for FAR LESS then RENTING it. Those days are gone, and that has now reversed: RENTING is FAR LESS then OWNING.
I remember, just 6 years ago, brand new 1200 sq ft 2 bed 2.5 bath townhomes were going for $70,000. Now they want nearly $300,000 for the same thing, yet the salary in Tampa has actually DROPPED since then.
We live in strange times.
-Dragasoni-
The denial is unbelievable. We deserve pain for our ignorance here in Baltimore.
I went to a party this weekend (in Florida) and the big talk was about the housing crash. I was shocked that people were talking about it. At least 75% were aware of what is going on. It appeared that the other 25% of the people were listening. There was a lot of talk about home prices softening, a buyers market, and prices have a long way to go down. At a similar party in January everyone disagreed with me and only two people listened.
I personally believe this change in oppinion came when CNN and FOXnews started showing their stories about the declining housing market.
Yes. On the elevator to work (Washington, DC) people were agreeing to wait to buy condos bc price were falling.
An employee of mine just bought a house. He came to me to let me know so I asked him a few questions. House price $550k. Downpayment borrowed from Dad 100K. Monthly payment $3200 and taxes $800 per month. Therefore combined = $4k per month. Monthly take home pay after taxes combined for Hubby and Wife = $5500. They have one child. I told him it is financial suicide but he still went ahead. Go fiure. The bubble is alive and well.
"Therefore combined = $4k per month. Monthly take home pay after taxes combined for Hubby and Wife = $5500"
my question is - why would ANYBODY choose to limit their financial freedom in such a way? Is the homebuilding / homeowenership marketing so powerful that it makes people do such things? Or is he just betting that the value will go up?
God, how it would suck to have nothing left to do anything in life with, or save for the future. I guess that's why they have credit cards, eh?
What a disaster.
I was unable to convince a friend of mine that she should continue to rent rather than buy a small condo. People believe what they want to believe. Thats why so many people like watching x-files and listening to David Lereah.
Joey,
prices will come down enough for people to be ab;e to afford them......simple as that. Take not that although prices of houses has doubled over the passed few years, wages and salaries have remained the same if not dropped in real terms.
Unless wages increase 2 fold in the next couple of years (hello inflation) there will be a major price decline, make no mistake, however it will take around 2 years for it to happen.....
there is and has been a total lack of reasoning on the part of people who deny the existence of this bubble. if their logic were in deed fact and houses just naturally appreciate in value 10% per year every year, all of their minor children would have to become Mick Jaggar rock stars or Bill Gates business moguls and have Mick Jaggar rock star and Bill Gates mogul incomes to afford a modest or comfortable house in the next 15 - 20 years. ok, maybe not Mick or Bill but you get the picture. in the global market of labor, the average little Johnny American isn't going to command $200,000 per year or more 15-20 years from now. delusional and irrational. you know the end is near when these idiot mortgage bankers and lenders start talking about generational and group mortgages. the generational mortgage idea was something that the Japanese had going at the peak of their real estate bubble 15 years ago. i wonder if that it is still around now.
I read a feed of personal finance blogs (which is how I found this site). I can't believe how many of these PF blogs are talking about how great of a decision it is to buy a house. Idiots.
I've commented on some people's posts who are buying, and they don't want to hear any negative comments from the bubble people. Because you can't time the stock market or real estate, right? Or it's ok to buy now because the buyer is a fiscally conservative person who is going to put down 20 percent, and all those people with bad loans have nothing to do with her. It would be funny if it were not so sad.
My real life friends know about the real estate bubble and are waiting to buy, I'm happy to say.
Dragasoni said...
"Prices are coming down a bit." they said. "But then we'll return to normal! You can keep FLORIDA down for long!!! This will only ne a sligh correction!"
I highly doubt it, prices here are still way to high for the $36,000 average salary in Tampa Bay.
I remember the good ol' days of 2000 & 2001 when buying meant you would own it for FAR LESS then RENTING it. Those days are gone, and that has now reversed: RENTING is FAR LESS then OWNING.
I remember, just 6 years ago, brand new 1200 sq ft 2 bed 2.5 bath townhomes were going for $70,000. Now they want nearly $300,000 for the same thing, yet the salary in Tampa has actually DROPPED since then.
We live in strange times.
-Dragasoni-
___________________________________
Yes, this is the true price of a condo, about 2x a starting salary for a college grad. Wasn't that long ago either. Since when did people think that condos should be in the 300k - 400k range? Insane.
"little Johnny American isn't going to command $200,000 per year or more 15-20 years from now"
They probably will. But then, a loaf of bread and a half-pound of baloney will be $100.
If you think hyperinflation is coming, maybe now *is* a good time to buy. (with a fixed rate)
Here in SoCal it isn't denial as much as it is GREED!
People have been told their home that they paid 500k, is worth 1.25mil....and Dammit, their gonna it!!!
Their gonna get it alright!
The company that I work for just hired a new manager - he is moving here from Florida. I mentioned to him that the housing bubble is deflating, and suggested he just rent and sit on the sidelines for a few months to (1) check out the area and decide where his family would like to live, and (2) keep an eye open for a desperate seller, price reductions, or some of the other good deals that are suddenly popping up all over the place like mushrooms here in the Seattle area.
But of course, being a true manager, he ignored this sage advice and just bought a $390K home, complete with granite countertops.
Let’s wish him lots of luck selling his Florida property! The first time he whines about making two house payments I will post his comments to this blog. Stay tuned!
No, they're "like totally clueless."
The house next door is still for sale (for the low, low price of $799000) and now it's for rent ($3200 per month)!
But the monthly alligator eats $8000 per month.
And the DC Area glut is growing daily.
Idiots.
DC Housing Bubble Blues
True story I have neighbors who just put their 2 bedroom shack up for $255,000, They bought it on a forclose in 1993 for $50,000 they owe $110,000 hello! house across the street has been on the market a year to date..no takers..trying to figure out the motivation here.
just by throwing your tv away, peoples spending will be greatly reduced and life enhanced.
I agree!
What city?
I'm in OC, California.
What do you think?
No, many ARE freaking "clueless"!
My Coworkers are still in la-la-land. Have not clue.
my father in-law tells me: just wait 6 months ... it'll be a great bying opportunity. I nod.
"They probably will. But then, a loaf of bread and a half-pound of baloney will be $100.
If you think hyperinflation is coming, maybe now *is* a good time to buy. (with a fixed rate)"
Yes, but if this hyperinflationary scenario plays out, then the US $ is toast...to be replace by a new currency.
Your debt would remain the same, but your assets' value will decrease significantly.
Hyperinflation is a bad bad thing.
jmr
I've often wondered about hyper inflation, How would people get ahold of all this money if employers wont raise wages? If everyone is buying china goods how can an employer pay you more when the competition is being paid 50cents an hour? Who would buy our overpriced hyperinflated goods when you could still go to walmart and buy their crap? And if everyone is buying the china crap how can we go into hyperinflation? I know, I know, I kinda lost myself too, hehe. The last country that went into this hyperinflation, Was globalization part of it or did it happen before globalization?
What I'm trying to say is:
If americans go into hyperinflation and start selling toasters for $500, and pay everyone makeing toasters $100k yr, so they can make the house payments, Who would buy these $500 toasters if walmart sells them for $15? How could they keep hyperinflation going? Nobody would buy the $500 american toaster and the company would close its doors and fire all the workers. This is whats happening right now, Are we in hyperinflation stage now and dont know it?
Because if you were a china man, Wouldnt you think america is in the hyperinflation stage?
You'll know we're entering a hyperinflation when loan contracts start adding clauses that scale payments according to the CPI or devaluation of the USD.
Some years back ('84?) Israel devalued the shekel and adjusted worker's pay upward to compensate. It was a windfall for mortgage holders who ended up making the same payment even though their wages had increased dramatically. The banks screamed about this but the courts ruled that those contracts were for a set payment amount and they had to be honored as written and agreed.
Look for the same thing to happen here in the U.S., and don't sign any loan contracts that allow escalation of payment terms.
My friends are in denial. I live in a bubble area that's at serious risk. The sizes of their mortgages (bigger than the currently way-inflated value of my house) used to bother me, but it's not as if they asked me for advice.
Or it's ok to buy now because the buyer is a fiscally conservative person who is going to put down 20 percent, and all those people with bad loans have nothing to do with her.
It depends on the housing market. Is the person putting down 20% expecting to have a mortgage payment that's 30% of her net salary? Is she free from consumer debt? Is she buying a property priced below three times her annual salary? Does she have a year's mortgage payments in her emergency fund? Is she going to be a co-owner? Is it a fifteen-year loan?
That's very different from the maxed out idiots in coastal or desert cities who put 0% down, or go for interest only loans or ARMs because they think double digit house appreciation will go on forever. One person is buying real estate that's affordable for her. The others are reaching beyond their means.
Most people don't look at fifty-year interest rate timelines or larger economic cycles or study what markets are like nationwide before they buy a house. "Oh, I'm buying a house here in Lawrence, Kansas. I better see what the markets are like in Schenectady, Billings, and Kissimmee."
"Your debt would remain the same, but your assets' value will decrease significantly. Hyperinflation is a bad bad thing."
True only if you try to sell assets to a buyer outside of the system. Assets denominated in dollars will lose value to foreigners, but to someone in the U.S. system they will retain pretty much the same value over time. Imported goods will become unaffordable, but exports will grow because foreign buyers will perceive big discounts.
The bad side of high inflation is that it skews purchasing decisions and adds a lot of inefficiencies to the economy -- similar to a tax on productivity. Hyperinflation is destructive because those inefficiencies start to dominate economic activity and productivity falls to zero as people scramble about trying to buy things.
Mild inflation of 3% or so a year is actually a good thing because it makes people feel positive about the future.
My teenage daughter started working part time as a retail clerk in a department store. She's noticing that more and more people have credit cards declined at checkout and she then has to run multiple cards through to get an item purchased. Many of them try to joke about their maxed-out cards as if it were something funny.
They indeed are clueless.
MAXED OUT CREDIT CARDS
I have noticed the same thing every time I go shopping. I live in OC Ca. The home of idiots with crazy mortgages. I guess that feeling in there stomach when every one looks at you like a moron when your card gets declined has not woke them up. How about a MORTGAGE LATE NOTICE. Do you think that will work???
Most of the people I know are CLUELESS.
"Are we in hyperinflation now and just don't know it?"
Good question. I think we ARE!
Look at costs of:
Housing, medical and higher ed. All through the roof in the past 5 years.
That's why I'm thinking deflation is next.
"Are we in hyperinflation now and just don't know it?"
Good question. I think we ARE!
Look at costs of:
Housing, medical and higher ed. All through the roof in the past 5 years.
That's why I'm thinking deflation is next.
What's the problem, if people willfully choose to be ignorant, then let them commit suicide. On the other hand, if they are friends and family, it is kind of sad. Personally I am fortunate that no one in my family is quite so ignorant.
Here in WA. State, people are increasingly catching on- MANY more than just a few months back.
There are, of course, those who still don't want to face it.
I feel sorry for those who bought 14 months ago, before the market began showing signs of weakness (long DOM's and price reductions). And before the national media started talking about potential "danger" in the RE market.
But anybody who's bought in the past several months, or is still buying, despite all the info readily available, is just a whippin' idiot who deserves to get burned.
Zero compassion for these last few fools, even the ones who are nice, well-meaning people.
At some point, you've got to wake up and smell the coffee and if you can't be bothered to plan sensibly for your financial future, why should I care what happens to you?
"That's why I'm thinking deflation is next."
Bernanke will not allow deflation, period, the end. They will hand out Federal Reserve debit cards if neccessary to to prevent a deflationary spiral.
Why? Because in this country at this time, a deflationary depression would mean the end of the federal government. They will inflate all of the overhanging debt away, count on it. Gold may be outlawed, but it's price versus the dollar will be many times higher than it is today.
""That's why I'm thinking deflation is next."
Bernanke will not allow deflation, period, the end. They will hand out Federal Reserve debit cards if neccessary to to prevent a deflationary spiral.
Why? Because in this country at this time, a deflationary depression would mean the end of the federal government. They will inflate all of the overhanging debt away, count on it. Gold may be outlawed, but it's price versus the dollar will be many times higher than it is today."
But that doesn't make any sense either. If you don't have deflation, then the value of the US dollar could fall to a few cents. At that point... how will you buy oil? Or anything else for that matter.
The only thing which the US has to trade is food - but this is also based on cheap diesel. (Most of your factories have already been moved to China and Mexico).
The alternative is for other countries to demand payment in gold. But since there isn't enough gold on the planet to supply the US with a month's worth of crude - where are you going to get the gold from?
The only solution would be to turn the entire population into slaves - who are working as cheap labor on farms to grow food which can be traded for gold which the government can use to buy oil to keep the tractors (and tanks) running.
But since you would need to create a fascist dictatorship first in order to create the population of slaves needed to run such an economy, that wouldn't be possible in the democratic United Sta...
Doh! Silly me. Dubya is in charge. You've got nothing to worry about.
I'm wondering... didn't the US also pass laws that even if you emmigrate to a different country, you still have to pay taxes for ten years afterwards? Even if you renounced your citizenship I believe? Would they also be allowed to pull you back into the army if a draft was reinstated?
America is not powerful enough to allow their currency to be destroyed from hyperinflation.
It is their #1 export, why should they ?
Asset deflation is definatley on the cards......as well as deflation on certain consumer goods.
Tight fiscal policy is a pill the Fed will have to swallow.....they are just delaying it further because of the elections coming up. If the rest of the world raises rates (which it is) so will the USA..
You all talk about other countries dumping the USD as though they have some alternative. The USD is the world's reserve currency. There is no alternative and they can't dump their dollar holdings anytime soon.
Bernanke could allow the dollar to fall considerably and those other bankers could do nothing but sit there and sh_t their pants. Yes, oil might go through the roof and a Lexus might cost $200K, but that is infinitely better than food riots or civil war.
Look back through history and you will see that when faced with unpayable debts, governments always inflate them away.
But? Has there ever been a country that went into hyperinflation while globalization has been going on? I dont understand how it could happen.
"America is not powerful enough to allow their currency to be destroyed from hyperinflation.
"
Sure we are. Our currency will still be there, but those pesky debts will go away. Foreigners and people living on fixed incomes will be screwed royally. Russia inflated away their debt back in the '90s, and they are doing just fine now. The UK went through this in the '50s and they are still kickin'.
Think of it as a Chapter 7 bankruptcy on a national scale. Our foreign creditors get pennies on the dollar, and we get put on financial probation for decades.
"Look back through history and you will see that when faced with unpayable debts, governments always inflate them away."
Yes - and whenever they did - the standard of living for the population dropped like a rock.
A good example - Zimbabwe. Does anybody want to trade with them?
You're also not realizing just how much US dollars are circulating out there. The Chinese are sitting on about a trillion dollars of the stuff alone.
ok... picture this:
The Chinsese make a deal with Iran to buy oil at $60 US a barrel from Iran. Iran then turns around to purchase $60 of any manufactured goods from China.
Do you see the US involved in the transaction at all? Of course not, but yet the US has to bear the brunt of competing in a market which doesn't require their goods. And all of the inflation goes back to the US.
Yes... the US can devalue the dollar - but at that point, the Chinese begin buying oil at $600 dollars a barrel and so too will the Iranians pay $600 for Chinese goods.
Do you get it now? Even if the dollar is the reserve currency - YOU DON'T MAKE ANYTHING! Therefore, you still can't buy anything when hyperinflation hits.
China can trade manufactured goods for US dollars. Iran can trade oil. What can the US trade? Food and Boeing airplanes!
There's already enough money in the system to keep the trade going even if they US disappeared.
So why would anyone want to get more US dollars from the US?
Especially if the printing presses are running around the clock?
The alternative is for the US to start shipping more food - which it has already been doing. Unfortunately, it now appears that the US has no more food to ship. There are already stories of shortages in the US.
"Do you get it now? Even if the dollar is the reserve currency - YOU DON'T MAKE ANYTHING! Therefore, you still can't buy anything when hyperinflation hits."
A bit of an exaggeration. Other than oil and a few industrial metals, the U.S. economy could be nearly self-sufficient, so what would we have to buy? And we have plenty of domestic oil available, just not at $70/bbl prices. If Iran tried to sell oil at even $200/bbl, I'll bet Canada would start melting those tar sands tomorrow. The DOE and U.S. Navy own vast deposits of oil shale in Colorado, and these too could come on line given enough incentives.
Yes, the standard of living in the U.S. might decline to 1950s levels, but again, that is infinitely more sustainable that the alternative -- a deflationary depression.
::The UK went through this in the '50s and they are still kickin'.
The British Empire collapsed from 1945 (starting with India) to 1971 (loss of Bahrain) and the pound lost 2/3 of its value during this time as the USD asserted itself as the world's reserve currency. Here's the difference, Britain was tied to the hip with the US during this time which is why they were able to jumpstart a financial industry (a.k.a portal to western European nations) to replace a falling empire. In addition, 2/3 of a currency is still better than what happend to the Turkish Lira, 8 Liras to 1 USD in the 60s to 2.5 million Liras to 1 USD in the 2000s.
I think the USD could go lower than the Pound Sterling during the next twenty or so years.
A bit of an exaggeration
I'm not so sure. If you read the major US exports it reads:
1) Boeing Airplanes
2) Soy beans
3) Corn, wheat, whatever...
Essentially, 9 of your top ten exports are food. Anything else produced by the US is consumed IN the US. What China, Iran, Mexico, Europe and other countries ship to the US is the extra stuff the US needs which it doesn't produce locally.
Examples: T-shirts, computers, tvs, bicycles, tires, lightbulbs, cloth, shoes, etc.
So... for example - the US might still have some lightbulb factories (5, 6?). BUT, if you can't buy from China or Europe, those few factories would be hard pressed to supply 300 million people in the US. The same goes for t-shirts.
In the end - yes - you can become self sufficient. You can start to build new lightbulb factories. But it is alot easier with cheap energy - why do you think the US grew so much during and after WWII - it's because in 1940, the US had a quarter of the world's known oil reserves. It was the major factor in being able to run the Nazi war machine into the ground - because the axis didn't have a steady supply of oil like the allies did.
With hyperinflation, and expensive oil - your economy goes back to the stone age.
Keep in mind that without oil - you can't produce any food because ALL of your farms are modernized - everything is sown and harvested with diesel tractors (while the Chinese still plant by hand btw).
And... you're putting alot of faith in someone else's oil - you should be looking to be independent of outside influence.
For the Canadians to supply you with oil... what will you give them in return? Canada only sells oil in Canadian dollars - which is why food is cheaper here than in the US. The US government is subsidizing food in order to sell it in Canada to get Canadian dollars to buy Canadian oil.
At one time, China wanted to buy oil from Canada but the deal fell through because the Chinese only had US dollars and had no way of buying the oil. (Canada will not change it's policy of selling oil in Canadian dollars - it is the only country on the planet which does this btw.)
Since then, however, the Chinese have come back to the bargaining table. They will aquire Canadian dollars one way or another - even if it means riding roughshod over the Americans.
And if you're thinking about all that brotherly love thing with the Canucks... just remember that business is business. If you want the oil - you better have something more to offer than the Chinese do.
Just remember the "Softwood Lumber ban" and how long Canadians had to put up with that from the US.
Total denial, even in the immediate family. I just keep my mouth shut and grieve silently. I know misinformed but nice people who are going to get a valuable but extremely hard learning lesson.
"our old neighbors sold her house for 475k. we both bought into that new neighborhood for 200k in 2000. i sold in 2003 for "only" 350k."
"they tell you it smells like sweet chocolate."
COMMENTS:
HOUSE WAS BOUGHT FOR $300K IN 2000. SOLD FOR $350 IN 2003. NEIGHBOUR SOLD FOR $475K IN 2006.
WHERE IS THE FRAKING HOUSIMG CRASH??
"Total denial, even in the immediate family. I just keep my mouth shut and grieve silently."
*** you better keep your f mouth shut becoz the house i bought in y2k has doubled, even if i sell it today ***
Mammoth said:"Let’s wish him lots of luck selling his Florida property! The first time he whines about making two house payments I will post his comments to this blog. Stay tuned"!
We'll be waiting!
Patience!!!
It's a commin
First we have to wait through the Greed and denial stages!
Once it starts, Look out!
"For the Canadians to supply you with oil... what will you give them in return? Canada only sells oil in Canadian dollars"
Wrong question. If push came to shove,why would Canada dare refuse to sell us oil on reasonable terms? The U.S. could conquer Canada (and Mexico for that matter) in 90 days. Imperialistic bullying? Sure, but desperate times sometimes demand drastic measures.
"For the Canadians to supply you with oil... what will you give them in return? Canada only sells oil in Canadian dollars"
The U.S. could conquer Canada (and Mexico for that matter) in 90 days. Imperialistic bullying?
You sir are a moron. It is precisely this attitude that got you stuck in Iraq and it is the biggest reason that the Americans will get exactly what they desrerve.
It's plain to see that when push comes to shove - there are citizens which are just as fascistic as their government. You deserve to be a slave - because you think like one. Too bad the rest of your compatriots have to suffer you're stupidity.
You're a disgrace to everything which America once stood for. The concepts of freedom and fair play only come into effect when an American's ass is on the line? Shame on you!
Canada btw IS a nuclear power (third behind Russia and the US) - during the cold war we were the first line of defense for the US against the soviets and would retaliate in a first strike. We're talking megaton sized bombs btw which could turn ANY country into green glass - including the US.
When Pierre Trudeau came to power, Canada officially became "Nuclear Free" because they didn't want to keep commiting resources to the US's lunatic goals of fighting with everyone on the planet. So... the warheads were dismantled.
It would probably take Canada a couple of hours to be armed to the teeth... again.
So go ahead - cross the 49'th parallel - just don't forget to bring alot of body bags you nazi, fascistic, dictator loving, piece of scum.
Oh look... I guess it really doesn't look too appealing to attack Canada now does it? If the Iranians are not building nukes - then they must really be stupid - because they'll have to deal with exactly this attitude from a few stupid Americans.
God help the rest of ya... when are you going to get rid of these morons?
"It would probably take Canada a couple of hours to be armed to the teeth... again."
Caaanaaada, oh Caaanada...
The few people who inhabit Canada know something about bears. If you are sitting at a camp site and an 800-pound Grizzly decides to join you for bacon and eggs, are you going to demand payment in Canadian dollars before handing over the bacon?
Political realities are political realities. History teaches that powerful nations take what they need, and justify their actions to suit the circumstances.
Back in 1825 President J.Q. Adams called in Thomas Jefferson to seek the old man's advise on securng our northern border. It seems your English friends across the pond were causing us a lot of grief with snipes like attacking Washington DC and burning the White House. Adams wanted to invade Canada and asked Jefferson what it would take to conquer that country. Jefferson's reply was "Thirty days of marching".
Keith,
My brother is in total denial. He insists that despite the skyrocketing PHX inventory (54k listings in MLS and counting), the prices in Scottsdale are not going to drop. This despite the fact that the AZ Repuglic reports that in the last month, Scottsdale prices have already dropped 2.6%. He is into the whole condo conversion scam. He just bought his 4th condo convert. 2/2 bed/bath for $250k. He told me that he is going to hold onto it and rent it out and wait for prices to appreciate. It's hard to get through to him because he has been able to get tons of responses to his For Rent ad on craiglist. So clearly there are still a lot of dummies out there who are gagging to live a leased 'upscale Scottsdale lifestyle' . LOLOL!
Deep denial in Portland Oregon where I taunt people on Craigslist. They first accuse me of being a jealous renter then they produce charts, graphs and real estate websites that claim the Northwest is "different", that there will be no housing bubble burst. Of course they think the doubling in the median home price in Portland in the last 5 years is warranted and sustainable due to strong in-migration. When I point out that places with strong in-migration like Florida and Arizona are crashing they dismiss them as "retirement states" like the age of those buying means anything.
And they're still building condo towers here with sales prices far above the affordability of most here. I read about a new rich guy condo tower 94% sold with over half to people from outside the area. In the age of republican tax cuts, the super wealthy are snapping up condos in every city so they can visit there every couple of years for a week or two.
A disgusting greed-culture we've created.
There was denial, but as the for sale signs multiply, and the ARM horror stories get told, they are waking up. But it is too late. The house is on fire, and the green money is burning up fast! God save their disappearing equity!
I told people in late 1999 to take their profit in the stock market and go to cash. Only a handfull listened. I saw some lose big time! "It's different this time", and you're a "Dooms Dayer" or "Chicken Little", is what I heared. I have been telling people the same thing in this housing market. But I road the bull until this year. I started to notice inventories going up and prices slowing, just like the stock market in early 2000! So I sold! One guy who did listen was the same guy who referred to me as "Chicken Little".
He told me "Your right" and he sold his house, and is renting now!
There is no profit until you take it!
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