Anyone else want to learn more about the housing bubble? I figure

[zonkers]

it's coming, might as well get a handle on it. I'd like to start a very informal study group. Sure it sounds dorky but who knows? It might even pay off somehow. At least I'll feel less stupid when I hear the topic discussed. Being more of a liberal arts guy, real estate is not really my bag.

I've been bookmarking R.E. blogs and saving articles on the subject for a few months. But now I'd like to get more focused and have a little method. So, here's my plan....

1. I'd like to determine the good blogs/sources from the bad ones. (There is a wealth of information on the subject)

2. I'd like to understand those concepts and terms that are a bit foreign to me right now.

3. I don't know, I just came up with this idea.

So, feel free to share any ideas, either in this thread or PM me. I may start a yahoo group or blog or something, I don't know, like a housing bubble blog for dummies.

[AutumnMist]

1. The Housing Bubble

depends on two things. Where you live: Housing bubbles in California are never cheap. Regardless of where you live. Unless you live in Mohave or Borax. Rule number one about housing bubbles? Location. Location. Location.

Rule Number Two? How many houses have been on the market and what they are asking for them. If most of the homes in your neighborhood are being put up for sale the chances of you selling are very slim. The chances of you buying at a fair market price for your location are great. Very great. The bubble can be a buyers market or a sellers market. That all depends. Its why people flip houses. If the bubble is a good one people can sell for top dollar with aesthetic renovations because of the property value and neighborhood. If it isn't such a great bubble in your neck of the woods? Invest in fixing up the major problems and sell it without the high price tag. Chances are you wont make much money off of any artistic investment.

[zonkers]

3. What you mean by "housing bubbles in CA are never cheap?

on edit....Do you mean that prices will never drop that much?

From what I have been reading about SD and OC, there will be many forclosures in the next two years and I imagine median prices can possibly drop 20 to 35 percent or so, right?
Again, I am just regurgitating what I have read and please if you know yer onions, do correct me or elaborate.

As far as your notion that situations vary from hood to hood, I know a load of housing has been developed for downtown L.A... Many new developments in S.D too. These areas will probably be hit hard as well as other clusters.

In Miami, Fl, my R.E. broker friend just laid off staff and tried to move to smaller office space. He also told me that 60,000 new units are or are about to go online in downtown miami... and there are very few takers.

[AutumnMist]

7. I Mean That In Most Places

in California you aren't going to get a home for $90,000. Beat up condos sell for $200,000 in many areas. Median prices can and will drop. Economy will always fluctuate. If you compare the west coast median prices with most of the U.S. buying a home will be expensive regardless. Building in areas may equal new homes or business..but if our economy cannot support it the new ventures tank. Hence the mass strip malls and tract homes that are up for sale in most areas right now. Many people get into a home on an inflated percentage rate on their mortgage. It goes up..people move out..home value decreases due to neighborhood possibly. But land value goes up due to new people coming in and building on the same pre tense as the person before. That land value depends on where you live. Southern California has some of the highest home costs and the fastest building rate of the nation. But the value of these homes increases not because of improvements per say, but because of the urban sprawl and lack of space that has occurred. In other areas of the United States that isn't an issue. You can get fair price with the house and the land. I hope that makes sense. I am tired and I need to go to bed. LOL.

[zonkers]

8. Thanks for the explanatiion.

[billyskank]

2. Weren't we supposed to be all living in bubbles by now anyway?

On the moon? :shrug:

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[billyskank]

5. Meanypants

[zonkers]

6. Fine.

[LaurenG]

9. Zonkers

you may not use the tools of the dark side to have your way. Billyskank must never be tortured or threatened. He's my friend and I must insist that you not do any dental work without a DDS.


Do not force me to call in reinforcements... :rofl:

[zonkers]

10. O.B....

I'm sowwy.