Wednesday, August 03, 2005

A Nice Rebuttal of the Anti-Bubble Case

Mike Shedlock defends the supposed Housing Bubble "myths" that, according to housing industry flacks, are being perpetrated on the poor American public by blogs like this one. Shedlock gives a nice pooint-by-point rebuttal to the argument in the online Wall Street Journal editorial pages that there is no housing bubble. Note the outrageous conflict of interest (and hypocrisy) of the original editorial writer (who attacks the notion of a bubble) at the end of the piece:

What Housing Bubble?

11 Comments:

Blogger LastRationalMan said...

Thanks Peter for putting together a blog focused on NYC - most of Ben Jones' stuff is focused on CA, AZ & FL. NY, while perrenially high, has gone completely out of touch with the fundamentals - as is evidenced by rent purchase price ratios. I strongly advocate to my friends selling and renting until this thing sorts itself out.

9:24 PM  
Blogger housegeek said...

A craigslist "reduced" properties update for NYC- 93 the first week I was checking (about a month ago) - 159 last week, 178 this week

10:21 AM  
Blogger housegeek said...

One more thing- The Times's latest on the housing boom has some interesting buried information:

http://www.nytimes.com/2005/08/04/nyregion/04housing.html?pagewanted=1&ei=5088&en=57b3845058d25a0d&ex=1280808000&partner=rssnyt&emc=rss

On page 3:

"We have many cases of three families in a one-family house," said Chuck Apelian, vice chairman of Community Board 7 in Flushing. "People pool their money, hold six jobs, work extensive hours and with 40-year mortgages and low interest rates, it is almost like paying rent. I tell people: 'Save your money. There will be foreclosures in the future.'"

What is also interesting is the passing references to the quality of this new construction. I've witnessed and walked through some of these new construction projects, and what I see is absolutely scary.

The real story here isn't that the real estate boom is prompting a boom in new-home building, it's that these homes are often very cheaply built, so they will be an even riskier long-term investment, especially consdering the folks who wind up in them are often working people cajoled into taking no-$$-down mortgages to be able to afford to buy.

We will have to wait a few years I suppose until the real story comes to light: That these houses of cards are designed to be a burden to homeowners, banks and ultimately the communities in which they are built.

10:41 AM  
Blogger Peter Herman said...

housegeek,

Thanks for the "reduced" listings update.

Peter

1:57 PM  
Blogger Dave S said...

This post has been tagged and ranked as one of the Quality ‘Housing Bubble’ Posts We-Rank has identified.

6:40 PM  
Blogger The Answer Man said...

Learn How The SMART Real Estate Investors Get RICH....And Its' NOT With Rentals, Forclosures Or The "Fix And Flip" Game.....

Click Here For More
Information


carletonsheets

4:51 PM  
Blogger The Real Estate Answer Man said...

Find Out What The Real Estate Investment "GURUS" Either Don't Know Or Aren't Telling You

Click Here For More
Information



johntreed.com

4:05 PM  
Blogger The Real Estate Answer Man said...

Find Out What The Real Estate Investment "GURUS" Either Don't Know Or Aren't Telling You

Click Here For More
Information



jane garvey

2:04 AM  
Blogger The Real Estate Answer Man said...

This Is The Way SMART Real Estate Investors Make Their Money..... And It's NOT With "UGLY HOUSE" Rhabs Or Foreclosues And Short Sales

Click Here For More
Information


macgoodfriend

10:53 AM  
Blogger Chuck Reynolds said...

This IS The Easiest Money I've Ever Made!

And You Can Do It Too!

natural product

7:03 PM  
Blogger FDF said...

You may not be able to take Pentazocine, or you may require a dosage adjustment or special monitoring during treatment if you have any of the conditions listed above.

2:12 AM  

Post a Comment

<< Home