10.26.2005
The Canary in the Gold Mine
Econo-Girl is willing to concede that occaisionally CNN Money has a good article. Click on the title to this post to see what a seasoned professional is doing with his US real estate: selling it.
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5 comments:
So if your interest is in "power assisted mobility" why are you at this site to begin with?
Econo-Girl doesn't mean to be hostile, but come on. How did the word verifier get turned off anyway?
Though I have no idea what the word-verifier is, I'm not just a cheap programmed advertising technique.
Its good to hear somebody finally using their brains on the housing market. I don't understand why people would keep pouring money into real estate as the prices go up. There is the fact that they can sell later for more, but than what they receive will not buy the same quality of real estate they had just given up. If they wait too long, the bottom will fall out. Then the property once bought for over three hundred thousand will cost only slightly over one hundred fifty thousand. Now, granted, he is dealin with much greater property values than the average American, but the same principles apply. I'd hate to be one of those amateurs when the bottom does fall out.
We shall see. I live in Miami, mentioned in the article. Here are a few things I think CNN is not taking into account.
1. land scarcity. almost all of Dade County is devloped. All the good land has homes on it. The land left over is either protected swampland (Everglades National Park) or other undesireable land. Meanwhile, people keep moving here. The demand for housing is high. Even if the bottom falls out, it is not likely it will fall very far. Some renter with credit will swoop in.
2. Rich people like Miami. A 5 million dollar condo sells faster than crack in Compton on payday.
I think that the condo market in Miami will be hit harder than the single family home market.
Econo-Girl also has heard whispers about the condo markets taking a hit here in DC.
Iggy, you have a great point about the inelasticity of demand in Miami. But at some point the number of people buying places is going to go down because the Baby Boomers will start dying off. That is one big population glut.
Anonymous, great point about the amateurs. Econo-Girl bought into a ghetto in mid-2002 that has since seen so much development that she barely recognizes it anymore. And, yes, Econo-Girl rubs her greasy little hands, waiting for the crash so she can land good deals. A girl can dream, can't she?
Anonymous, good insight into the pitfalls of selling for fast cash.
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