February 28, 2008

How do you say "Ponzi Scheme" or "holy crap I just got killed in real estate" in Turkish? Turkey tourist area home prices crash 40%


Ah, ya gotta love the wide-eyed "rents don't matter" second home property investors who are getting slaughtered all around the world now - Miami, Spain, Bulgaria, Ireland, Latvia, Lithuania and now even Turkey.

Bloody idiots. The biggest problem isn't the Brits and the Californians who started it. Nope, it's the locals who got sucked along into the Ponzi Scheme just like the sheeple in Phoenix, Vegas and Tampa, who got in right when the out-of-state or out-of-country speculators were getting out. They're the real bag holders in this mess now as the investors flee or walk away.

Thanks Mark for the link.

Turkish Daily News - Summer house prices upside down

Real estate prices in Turkey's major tourist areas have dropped by 15 percent to 40 percent, an industry executive said Saturday.

Spurred on by a 1-point reduction in mortgage rates, Antalya's real estate sector experienced a boom toward the end of 2004 and at the beginning of 2005, Sağlam said. The effect was strongly felt in such cameo tourist communities as Antalya, Alanya, Mersin, Muğla, Bodrum, Fethiye and Marmaris.

Many civil servants were able to buy houses at that time, Sağlam added, noting that a subsequent 1.9-point jump in interest rates put a damper on the buying spree, causing the construction and real estate sectors to grind to a halt.

“This increase gave rise to stagnation in the Antalyan real estate sector,” he said. “Sales suddenly stopped and began to decline, leading to a 35 to 40 percent drop in prices today.

16 comments:

devestment said...

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Rug and camel prices are way down also...

Brian said...

The Viet Nam Property crash should be happening any time now as well.

Property will certainly be the last of the large bubbles. A few more bubbles may occur along the road to ruin, but they will be smaller for several reasons:

1) Real estate has the largest valuation per 'share' (i.e. price of a median hoouse)

2) Far more participants - more people own a house than like to speculate in financial assets. The great housing bubble gave them a chance to do both.

3) We are all going to be much more cautious for the near future. Any additional speculation would require borrowed funds, which the ignorant masses will have limited access to. Plus, they have no savings either. No savings, noa ability to borrow, poof! No bubble.

Brian

Anonymous said...

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HA! I thought that was a picture of an Obama ralley. Sorry. my bad.

Anonymous said...

I've in Morocco since last Sept. The real estate prices (I should say fake estate--not real estate) have doubled here in 2 years. Foreign investors from Europe, the US and the Gulf have driven home prices to unsustainable levels, especially in Marrakech, Casablanca, Agadir, Fez, and Tangiers. In some areas, the price per square foot is even higher than in DC.
I don't think this market is shielded from the disastrous crash taking place in the US and other places. My wife wants to buy a 900 sq ft appartment she likes. I am saying: "not now." Should she buy?
MAX

Anonymous said...

Look at all those Bolshevik idiots.

Anonymous said...

Damn... I was just thinking of moving there.....NOT!

MustafaGemal said...

Devestment said:
Rug and camel prices are way down also...

Let's be specific, flea-infested rug and blind camel prices are way down also.

All joking aside I like the turks, I know they will do much better in Iraq than we have and I am betting on a few hundred years of history.

Anonymous said...

Antalya is a great place for a vacation (I've been there three times).

Never occurred to me to buy real estate there, however...

Anonymous said...

Istanbul is different, everyone wants to live here!!

Mike F said...

Keith,

A serious question here. I do agree that the real estate bubble was (more or less) global. Here in Australia prices have gone from outrageous to ridiculous over the past eight years.

I fully expect my house to drop twenty percent in value over the next year.

The Melbourne fringe is starting to see repossessions at a much higher rate (particularly as the Reserve Rate climbs). BUT:

There's also incredible rental increases and the vacancy rates for the inner and middle suburbs are almost nonexistant.

Plus, the economy seems to be doing well down here. Tightening money supply (internationally) and inflation seem to be the problems, and then mostly for highly leveraged companies.

The Australian economy has been in surplus for the last nine or ten year.

Any opinion?

Frank@Scottsdale-Sucks.com said...

Where's that troll who kept posting that Phoenix is a solid market because Honeywell is there?

I remember a couple of months ago, a Honeywell insider posting as anon claiming that their Phoenix facilities would close and all jobs were going to Mexico and Asia.

The first announcement came today and is in the AZ Repulsive newspaper - the first phase-out of AZ jobs that are going to Indonesia and Malaysia.

Get ready for more. It's gonna look like these third-world hellholes soon. Much of it already does.

edd said...

After watching the real story in Midnight Express a few times, I would not even overfly Turkey.

I'd prefer chicken.

tater said...

Keefer, et al,
Enjoy the Turkish read with the English Translation at the bottom.

sevgili Bay. Keefer: yardım etmek biz -si olmak kayıp çok para üstünde bizim ev. tüm -in belgili tanımlık koyun -si olmak sol bizi ve bizim ev fiyat -si olmak düşük. eğer biz sakin almak yardım etmek kısa bir süre içinde , biz -ecek var olmak pissed uzakta. biz lüzum adl -in senin Amerikalı gerçek arazi acenta tümce -e doğru bizim ülke , öylesine biz -ebilmek almak belgili tanımlık koyun -e doğru alış bizim yere - fiyat ev bir daha. göndermek Suzanne -e doğru bizi doğru şimdi , ve biz -ecek kullanma onu -e kadar diğer gelmek. mutlu etmek ham dolsun Bay. Tater için giving sen bu haber için bizi. Bay Tater bkz. be a yakışıklı , güzel , cesur , zeki adam --dan gösterişli ve biz gerçekten takdir etmek onun adl mutlak doğal özellik.

Translated to English:
Dear Mr. Keefer: Help! We have lost much money on our houses. All of the sheeple have left us and our house prices have fallen. If we don't get help soon, we will be pissed off. We need many of your American real estate agents sent to our country, so we can get the sheeple to buying our over-priced houses again. Send Suzanne to us right now, and we will use her until others arrive. Please thank Mr. Tater for giving you this message for us. Mr. Tater is a handsome, nice, courageous, intelligent man from Florida and we really admire his many positive attributes.

Aw shucks, I'm blushing....

Anonymous said...

"Joey, have you ever been in a Turkish prison?"

Anonymous said...

Keith,
You probably did not expect an answer to your question but here is the translation: "Hassiktir! Gayrimenkul beni mahvetti"

It is impossible to translate slang word-by-word but I think this is the closest translation.

Andrew Hac said...

This nation and most of its citizens, residents, dwellers, occupants have no ethic, no moral, no responsibility, no duty, no honor, and last but not least, no brain. What it has in plenty is greed, self-centerness, ignorance, pompousness.

The housing bubble is a shiny mirror in which the Americano can look at itself and ponder upon what may the future brings upon this land of the Snapper Turtle.

A nation that mostly comprises of pigs feeding, tearing, roosting, chomping at the trough.
A nation with most of its dwellers obese, fat, diabetic, and plain ugly like a chimpanzee. An excellent display of this specimen is "BORKAFATTY" AKA The Pig.
A nation where a Walmart cashier can buy a house for $500K.
A nation in which its citizen's brain IQ is lower than a snapper turtle.
A nation which rules by turkeys, skunks, and rats.

The Americano nation is as toasted as a roasted armadillo skewered from mouth to ass sizzling, popping, oozing with melted golden fat over a bed of white hot charcoal.