February 20, 2007

HousingPANIC Stupid Question of the Day


The US housing bubble is over and it's obvious we are now crashing.

So why hasn't the rest of the world, with so many markets even more manic than the US, seem to have gotten the memo yet?

Will the US housing crash be the start of a worldwide housing crash, or are we on our own?

37 comments:

concerned said...

Oh don't worry....others will be joining the party soon enough......

traineeinvestor said...

Depends which market you are looking at. Many are like the US market (or, at least, large parts of the US market) in being over valued. Some of those markets have the potential to "correct". There is of course a significant question as to how far those markets will correct and how long it will take. As an example, London is hideously expensive but planning restrictions, the developed world's worst transport system, demographics and low interest rates would suggest that there is at least some chance that any downturn will be limited (although this is not a proposition that I am wagering any money on).

In contrast, there are many markets which are still relatively cheap by international standards and which have the potential for price appreciation. Growing populations, economies moving from command to market based, the rise of a middle class that can afford to, and wants to, live in decent housing and the ready availability of bank loans have the potential to drive some emerging markets in Asia and Eastern Europe for several years yet.

The one thing that may soften the fall in the over priced markets is a combination of desperate governments flooding the world with liquiidty and the resulting inflation.

Aussie said...
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Anonymous said...

It's crashing in Ireland and Sydney.

Dr Housing Bubble said...

OC down by $42,000 in one month. That seems pretty significant don't you think?

Dr. Housing Bubble

JFK said...

Suzanne researched this and everything's OK. Move along now.

Anonymous said...

In Bangkok new condos still being built like crazy and selling for $350 per square foot.

Even though the gov't is basically unstable at the moment.

Buying here is about 150 to 200X the Gross monthly rental income. When I bought it was about 120X.

Anonymous said...

lots of new GIANT rental buildings in Los Angeles around the metro rail and no one to live in them. Still they build more....

Anonymous said...

Chicken Little AKA Keith,

In Tulsa Oklahoma, house prices went up around 5%. It does not look like our world is crashing. We have had many investors from the West Coast purchasing properties. I paid cash for my house 3 years ago, so I wish it would go down so I will have a lower tax bill!

honica jewinski said...
This comment has been removed by a blog administrator.
Concerned said...

Oh the shit is hitting the fan in Europe too.......slowly but surely....Greece is getting hit hard.....ghost towns outside of Athens.....

keith said...

Here's the problem with Tulsa

1) Nobody wants to live there
2) No company will ever relocate there
3) You'll never see valid appreciation in Tulsa beyond the rate of inflation, at best
4) Tulsa will always be Tulsa. Unless they move some mountains or a beach there, it'll always be Tulsa.

Sorry if the truth hurts. Probably lots of fine people in Tulsa, unlike Miami and Phoenix. But a home in tulsa is just that - a home. Not an investment.

keith said...

I'm off to Barcelona Spain tomorrow. Can't wait to see what my $1 million will get me there.

Any tips?

FlyingMonkeyWarrior said...

what sky line is that pic of?
iw

keith said...

Dubai of course, home to 15% to 25% of the world's cranes, and the biggest housing ponzi scheme outside of miami

Anonymous said...

The problem with Tulsa is too many Oklahomans live there!

Tulsa said...

Keith, You are a bitter little man. I have been to London and it is nice to visit but the weather stinks. Before anyone says Tulsa is a bad place, have they visited?? Vanguard Car Rental(Alamo and National) recently moved HQ to Tulsa from FL. I have lived in Palm Springs and Boston and Tulsa is not a bad place to raise a family. By the way, I just flipped a condo on Hallendale Beach, FL for a $30,000 profit.

Anonymous said...

$1 million in Barcelona? More or less 1650 sq feet in a nice neighbourhood. The one that you could probably rent for less than $2000/mo. Barcelona (with Madrid) has the craziest RE prices in Spain, and one of the biggest RE bubbles of he world.

Enjoy.

Veronica Lodge said...

Anonymous said...The problem with Tulsa is too many Oklahomans live there!

I have heard that the Oklahoma territory was settled accidentally, because the people who ended up there were actually on their way to California. Apparently, their wagons broke down in Oklahoma and they were either too lazy or too stupid to fix them.

Is this true?

brokersleaveyoubroke said...

Anonymous said...
Chicken Little AKA Keith,

In Tulsa Oklahoma, house prices went up around 5%.

Lets see, subprime lenders going bankrupt by the dozen, home prices doen in 75% of American cities, 2.7% of American homes are vacant (an all time record), savings rate lower then during the depression and you think there's nothing to worry about because prices are up 5% in Tulsa. I think I'll stick with chicken little until someone comes up with a better arguement.

Anonymous said...

The Tommys have bid up most of Spain. If you must spend a million US in Spain I'd suggest an area that is less spec-tour-eurotrash.

Like Salamanca. Besides being an ancient university town it holds the real attraction in Spain - the women are, across the board, more attractive than any other city i have ever been in.

Blowfly said...

This is Blowfly you moronic imbecile jackass renters. How is life going in your roach infested little crapper box rental shacks? Stop whining about this so called housing crash. Only a totally obtuse, retarded, brain amputated idiot believes that. This whole blog sounds like a congregation of lame brained, dumdum, fatuous ex realtwhores. I wish stupidity would cause physical pain so I could hear all of you rent-asses screaming!

raynla said...

Blowfly,

What's your favorite Kool-Aid Flavor?

I have to stop by COSTCO later today.

Anonymous said...

because the us dollar is all over the place. rather than eat the losses to come, everyone's trying to convert them into something like buildings as fast as possible.

buyerwillepb said...
This comment has been removed by a blog administrator.
Jane said...

In Australia the news reports say that housing prices are staying high and unaffordable by first home buyers while the rental market is soaring in price as there aren't enough rental properties due to people not being able to afford to buy housing. We seem to be at a bit of a stalemate. In the city where I live a small dump just went for $1 million. 5 years ago it would have gone for $350,000 tops. The way I see it, people will go to sell their houses at some point and there just won't be any buyers left. But will there be a crash if there isn't a huge surplus of housing stock for sale?

Anonymous said...

"Will the US housing crash be the start of a worldwide housing crash, or are we on our own?"

You betcha.

Anonymous said...

"lots of new GIANT rental buildings in Los Angeles around the metro rail and no one to live in them. Still they build more...."

LA Dwtn is a singularly unattractive place. The Second largest city in the USA has the distinction of having some of the slimiest nastiest third-world immigrant-infested s*itholes immediately ringing the DWTN. Yes, the city leaders and developers are proceeding to put up lots of mid-hi-rise condos/lofts/apts in the south park district along grand ave. Also some bldg activity in Centrel city west across the harbor fwy.
Over 7000 new housing units wiil be completed over next 2 years. The market Lofts at grand/9th st is the most recent complex available for purchase.
All this hugh bldg activity(20 new hi-rises just in SPark) does not alter the paved, ramped,fortress-like concrete bunker aspect of dtwn LA, nor erase the hugh homeless/derelect dtwn population which infests the urine smelling sidewalks.
BTW LA city is becoming a third-world tijuana cesspool, except for a tiny narrow coastal fringe on the westside/southbay.

Anonymous said...

Hey blowfly!

I got hot little co-ed waiting for me on my tattered, smelly couch I got from a dumpster.

What you got?

Anonymous said...

just love that sub tropical thatched roof beachside cottage, no natives, no problems, fish, farm, ranch, no money, no stress, does not exist no more

Anonymous said...

fouled by trumpsters

Mozo Maz said...

Bank of Japan raises rates to 0.5%

Yahoo News

Paris2LA said...

Any data on Paris real estate conditions?

Anonymous said...

Considering I have been watching the market for a while now things are slowing down. Places are not being sold at all.

The reason why it seems Europe is not falling as quick is because people don't move as quick. I have found in North America you might start looking and buying something within a week. Whereas Europe you would wait a month or more.

But the crash in Europe will come as surely as it does to America.

Anonymous said...

How can japan have a rate of .5% when their national debt is 8 trillion US dollars and their gdp is one third of ours?

Anonymous said...

home prices doen in 75% of American cities

According to....

Anonymous said...

How can japan have a rate of .5% when their national debt is 8 trillion US dollars and their gdp is one third of ours?

Because all their borrowing is internal, they can set their rates anywhere they want. Japan is the world's biggest creditor, the US is the world's biggest debtor. The US can't dictate to the rest of the world the rates for lending it money.