Friday, August 12, 2005

The Grunt on the "Housing Bomb"

The Property Grunt has become increasingly alarmist on the state of the housing bubble, which he now calls a bomb:

"The chaotic nature of the real estate market and factors associated with it gravely concern the Grunt. I could give you a laundry list of factors ranging from suicidal mortgages being taken by buyers infected with irrational exuberance to a housing market that has been carpet bombed senseless with overpriced homes and a lack of inventory. However there are two factors that I would like to address that I feel that are transforming this bubble into a bomb."

The two factor the grunt details are the continual upward pressure by the Fed on interest rates and the complete disorder at Fannie Mae.

The Grunt's bottom-line advice:

"Whether you are buying, selling or sitting this one out please watch your backs and do not ignore the red flags that have popped up. This is not the time to gamble with your finances with risky mortgages or overpriced property. Whatever deals you make, do the math and make sure it makes sense. And when in doubt, dont."

From Housing Bubble to Housing Bomb

1 Comments:

Blogger moi said...

can i link to your blog?

mine's here: http://www.home-o-phobia.blogspot.com

thanks, f

3:55 AM  

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