Skip to Content.
Sympa Menu

homestead - Re: [Homestead] Obama fans, what say ye?

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Obama fans, what say ye?
  • Date: Wed, 16 Apr 2008 11:56:30 -0500


On Apr 16, 2008, at 11:32 AM, Clansgian AT wmconnect.com wrote:


The laws of supply and demand most assuredly apply to land and housing
as they apply to oil or food. Do you really not see that?

Yes but the demand for housing is different from the demand for food. You
need a certain amount of food, too much or too little is bad for you. But
housing? You can live in a 12' camper or a 6000 sq ft house. The latitude is huge.

Agreed. Most young couples, most moving up to a better school district, most moving into a retirement house or condo, do not consider the wide range of possibilities. In their realities, a home is a house or condo on a lot in city or suburbia or an apartment in a city. A 12-foot camper? You and I would, temporarily, but would work hard to find something bigger.

You may have seen the numerous articles about people doubling up, grown
children moving in with parents and whole families moving in with relatives. The
'demand' for housing, especially the sort of housing most involved in the
bubble, can be extinquished in a very short period of time.

Well, the prices caused that. Most people still want a house on a lot. It is the ubiquitous "American Dream."

Prices control most housing. Doubling up? Oh, yeah. When Chris and I lived in an apartment building on Pacific Coast Highway in Redondo Beach, California there was a small apartment down the hall that was rented by I believe four young men who walked to their waiter jobs from that location. I knew a woman who worked at one of the big gambling and hotel establishments in South Lake Tahoe. She said there are beds that never get cold--people working the club jobs triple up.

Coupled with that, there is a trend now for imigrants to leave the country.
Also the price of gasoline (which is unlikely to ever abate) makes far flung
ex-burbs impractical.

Many economic issues there that are becoming political issues. Expect foolishness.

Demographics haven't drastically changed, we are all still sleeping beneath a
roof somewhere. And yet housing sales and values are extremely down.

I won't predict how soon, but sales and prices will come back. Right now there is a lot of demand that is being held down. There are still all those weddings, births, job transfers, retirements, all the events going on that cause housing market conditions. I hope the market comes back gradually, but considering the knee-jerkiness that is so common today, inflamed by irresponsible writers and news people, it may come back with a painful rush that will cause yet another adjustment.

Oil sales will go down. Doesn't matter what our preferences and 'druthers
are, it's a reality the world has to deal with. But food sales won't. The food
will be more expensive and of a different type (read a interesting article
about how the world is turning away from rice and wheat and to the potato), but
the sales of food will go unabated, the only alternative being malnutrition.

But housing sales will go down and the only difference is that where people
thought they would be living in a 5000 sqft house on five acres, they will be
living in the refitted garage of their uncle.

I think not. But I do think, and it may be wishful thinking, that people will now be more realistic about size and price. Of course our historical memory longevity gives scant hope that a lesson has been learned. Our leaders will no doubt help those who remain ignorant. We dues payers will foot the bills.





Archive powered by MHonArc 2.6.24.

Top of Page