I'm in the construction business in NE Ohio. It seems to me like the housing bubble is about to seriously burt due to rising interest rates and all-time high material prices. There are also lots of unsold new homes out there.
Anyone agree with me?
2006-07-30 00:32:13 · 3 answers · asked by nickacarroll 2 in Business & Finance ➔ Renting & Real Estate
Oh I agree.
I think there's definitely a slow-down. I've been looking at real estate in different parts of the country and see new construction competing against private sellers, but the construction companies have still increased prices by 10% during each of the past 6 months for years now across the board, which baffles the mind. I also didn't see a willingness on their part to negotiate, so it can't be that bad, just yet. Guess they're still hoping to find some sucker to buy high, but that'll change.
Bernake was saying last week that we will feel the pinch of the combined housing slow down, benefits cuts, inflation, economic slow down, etc. in about 5-10 years.
2006-07-30 00:42:19 · answer #1 · answered by scubalady01 5 · 1⤊ 0⤋
The housing market is not one overall market, it's an amalgamation of many local markets. Nonetheless, in a large portion of those local markets, particularly the big urban markets that have seen major appreciation in the last few years, all the tricks to keep the market going up have already been used, and national factors like interest rates (i.e. the cost of money to buy the property) have gone up. Basically, of those who have not bought yet, few people can afford current prices, and current rental rates do not cover the monthly costs of owning the property.
Here's my earliest article on the web that predicted it:
http://www.searchlightcrusade.net/posts/1119555838.shtml
Now those who nonetheless are able to buy right now will be very happy in a few years. There are some fantastic bargains available. I bought at the top of the market in 1991, and am very glad I did, because I stepped off the rent escalator just before it went bonkers.
2006-07-30 02:47:01 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
i was in the new housing industry for a long time myself and it happens this way about every 10 years or so for maybe 8 or9 months then graduly pick back up..it gives the illegals a good vacation and gives away all our welfare
2006-07-30 00:46:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋