Are We Turning Into Europe?
Magazine - Toll Brothers: Still King of Real Estate - FORTUNE - Page
That the traditional boom-to-bust housing cycle is now a smooth upward climb. That housing prices will keep rocking practically, well, forever. "We'll reach the point Europe reached 20 years ago, where families pay 45% of their income on housing and married couples have to live with their parents for years before they can afford houses," he says. "Prices will keep going up in double digits for years."Yes, it really is different this time. Really. It is. Trust me.
This should, I suppose, be yet another warning sign. On the other hand, with every other real estate story seeming to worry about The Bubble, it reminds me more of the "wall of worry" dot.com stocks climbed for years until the worry finally vanished, traders capitulated, and every bartender and busboy was "in the market."
We haven't reached that stage yet, and I think we are several wild years away from it still.
Comments
I agree that this will be yet another warning sign that we will all look back on and say "that was when I just knew that the bubble was about to burst!"
But frankly, the most sign of most concern is the quotes in some posts below that highlight the increase of interest only loans out there. Either a lot more buyers are living waaay beyond their means or speculation is fueling the incendary pace of prices. Both are bad news for our industry...
BTW, just for jollies, I knew the dot-com bubble had burst the afternoon that I read a WSJ article in which Wall St. was hearing ruminations about wanting to see some profits instead of "eyeballs". I was hanging ceiling tiles in an office of a dot-bomb in a building that I managed and overheard a corporate V.P. interviewing a recruit that had the temerity to ask about profitability. The recruit was chastised for being so green...yet six months later I was buying their furniture for 10¢ on the $. Funny how one remembers little things like that.
Posted by: joby![[TypeKey Profile Page]](http://www.dailypundit.com/sfrealblog/nav-commenters.gif)
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May 31, 2005 12:52 AM
I think the real estate will still keep rising! It is a few years away for sure. That is what I hope at least.
Posted by: Livermore California Realtor | June 2, 2005 01:09 AM
In the area of Florida I'm in we *are* in that stage. So many people we know who are normally so passive about investments have been roused to action and are trying to make a quick buck.
Posted by: Steven Romej | June 5, 2005 07:02 PM
I am in Colorado and it is definitely a buyers market. agents are not even accepting certain types of real estate such as condos. Some of my friends who invest in real estate are purchasing properties well below market values.
Posted by: steel buildings![[TypeKey Profile Page]](http://www.dailypundit.com/sfrealblog/nav-commenters.gif)
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July 31, 2005 10:01 PM
Interesting article about pressure on rents as a result of housing costs:
http://nytimes.com/2005/08/25/
realestate/25rent.html?ei=
5094&en=451e679a25895db1&hp
=&ex=1125028800&partner=
homepage&pagewanted=print
Posted by: Renter | August 25, 2005 02:58 PM