Biggest Bubble Ever
snip...
"• Overheated prices. Until 1995, housing prices largely kept pace with inflation. In the last nine years though, home prices on average have spiked 35 percent after adjusting for inflation. In some areas (mostly coastal cities) home prices have skyrocketed by incredibly higher margins than that. In San Diego County, for example, the median price of a home is now $472,000. (That means that half the homes sell above that price and half of them sell below it.) That represents an increase of 129 percent in just five years! Yet the county’s median income, at $52,000, has gone up only by about 11 percent during that time."
More...
"• Overheated prices. Until 1995, housing prices largely kept pace with inflation. In the last nine years though, home prices on average have spiked 35 percent after adjusting for inflation. In some areas (mostly coastal cities) home prices have skyrocketed by incredibly higher margins than that. In San Diego County, for example, the median price of a home is now $472,000. (That means that half the homes sell above that price and half of them sell below it.) That represents an increase of 129 percent in just five years! Yet the county’s median income, at $52,000, has gone up only by about 11 percent during that time."
More...
posted by Little_Silvered at 10:40 AM
2 Comments:
If it looks insane it is insane.
It's that simple.
The fact is prices are way way overinflated.
50% drops in condos and about 30% for houses will bring things back to just fair value. 7% compounded growth trendline.
7% annual home appreciation is very very generous by the way. So drop this to 5% and the fall is even greater.
COLLAPASE!
Just got back from an open house at the Tradewinds. I have never seen worse construction in my life- shoddy workmanship,illogical layout, yuck! The owner bought preconstruction for $2.6 mill and is trying to sell for $3.75 mill. Good luck!! What a waste of beachfront property.
Post a Comment
<< Home