Skip to Content.
Sympa Menu

homestead - Re: [Homestead] Real estate market in balance

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Real estate market in balance
  • Date: Mon, 10 Apr 2006 22:54:31 EDT



> James, it occurs to me that my view of real estate cycles is similar
> to your view of what others call global warming. The climate may in
> fact be simply doing what it has always done, cycle. So, too, real
> estate prices surge and wane cyclically. I don't see bubbles, I see
> normal business cycles.


But, Gene, do you not see some aspects of the last five years to be unique,
unseen before? Intrest only loans, less than interest only loans, the
percentage of houses bought on speculation and as second homes, houses bought
with
little or no down payment, so many HUGE houses being built. I admit I might
have
had my head in the sand for decades and missed a lot. I only borrowed money
once to buy real estate and then parlayed that into better and better
investment without borrowing any more money. I appeared to me that real
estate
lending was cautious.

My misgivings about the status and immediate future status of real estate
comes from what seems to me to be some unique things that have gone on in the
past five years. I very much believe in regular economic cycles and that
they
are nothing to be much concerned with in the long run. But based on some of
my
neighbors and friends, there have been what seems to be a lot of mighty
unsound loans made with houses as collateral.

When I add together the tricky loans, the % of houses bought as speculation,
the far-flung cavernous McMansions with the rising price of motor fuel and
heating fuel, it makes me wonder if we can expect past patterns to hold true.




Archive powered by MHonArc 2.6.24.

Top of Page