"In once hot markets like Boston are now down by more than 10 percent from their high point. The same goes for parts of the Phoenix area, where the number of homes on the market has more than doubled to 45,000 since last October."
http://www.usnews.com/usnews/biztech/articles/061029/6housing.htm
"National housing prices took a record fall in September as the pace of sales skidded for the sixth consecutive month. The median price for an existing home nationwide -- including single-family houses, condos and co-ops -- dropped 2.2 percent"
" For example, a major home builder has told me that the share of unsold
homes has topped 80 percent in some of the new subdivisions around Phoenix and Las Vegas, which he labeled the new "ghost towns" of the West. "
> "There's a psychological umbrella of fear in Phoenix's housing market now," said Tim Sullivan, a national housing analyst with San Diego-based Sullivan Group. "Buyers are uncertain."
From don.bowen AT earthlink.net Wed Nov 1 10:59:05 2006Return-Path: <don.bowen AT earthlink.net>
From don.bowen AT earthlink.net Wed Nov 1 10:59:06 2006Return-Path: <don.bowen AT earthlink.net>
Using the
well, if it is good, gives you more protection against future price
hikes for rural water system and more control over quality. You are
then subject to potential rises in electricity and outages.
From don.bowen AT earthlink.net Wed Nov 1 11:19:24 2006Return-Path: <don.bowen AT earthlink.net>
You all missed the point of the article, it has nothing to do with present
bubbles but a lot to do with the future expected population
increases.
From don.bowen AT earthlink.net Wed Nov 1 11:34:45 2006Return-Path: <don.bowen AT earthlink.net>
From don.bowen AT earthlink.net Wed Nov 1 11:38:19 2006Return-Path: <don.bowen AT earthlink.net>
From vdjor AT yahoo.com Wed Nov 1 11:51:17 2006Return-Path: <vdjor AT yahoo.com>
I spent several enjoyable weeks this last summerhttp://www.braingarage.com/Dons/Travels/journal/Journal.html
talking with Gene and I learned a lot that I have now had a chance to think
about, research, and digest. This bubble talk is a good chance to bring
some of that up.
The recent housing price escalation has been called
a bubble by many and in some areas it is and there are corrections going on
but in most areas a bubble is not the correct term. Looking at it long
term, there will be short term price drops and rising inventories but
many of those houses were bought on the anticipation of short term increases,
in other words, greed. Those people took a chance and risk is risk.
Long term, worst case for many will be a leveling
and many years of flat prices. No more spinning a house in two weeks for
$50,000 profit. Long term house prices will have to wait for wages to
catch up. Long term, the population is increasing and those people need a
place to live.
There can be a bubble in tech stocks and that bubble
can pop almost overnight. But how many people need a tech stock? On the other hand how many people need a place to live?
In the short term the housing price bust will cause
problems. Many people have been using the house as a piggy bank to finance
ever bigger houses, fancy cars, boats, vacations, etc. That will stop
and people who over extended themselves will feel the pop. Builders are
cutting back and as projects are finished, workers will be laid off. As
much as 30% of California's employment increase in the last few
years was in housing, agents, brokers, carpenters, etc. With the economy
slowing in general the housing bust will only add to the problem.
Don Bowen Awl Knotted Up KI6DIU
http://www.braingarage.com
My travel journal
http://lists.ibiblio.org/mailman/options/homestead/vdjor%40yahoo.com
I am omnivagant. _______________________________________________
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