Monday, December 26, 2005

Eya / Urban: Market Report


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7 comments:

  1. I wonder what those who wrote this suberb piece of hype are predicting now>? Wait, I know- a soft landing. What happens in the spring when panic sets in across the Washington area- as it already is? Funny thing about unrestrained speculative capitalism- it seems to always collapse- a victim of its own success and excess.

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  2. Whatever the hype may have been that was propogated via publications like this one, you have to give credit that they were right in 2005. I am certain this year won't be like 2005 in DC, but the RE industry predicted correctly (got lucky) in DC for 2005.

    I for one, with my cash, am waiting for the right moment to scoop up a nice 2BR for a 10-20% discount in NW DC in 2006.

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  3. problem is whatever you scoop up will drift lower...this downturn could last 10-15 years easily...what you buy for 700 today will be 650 next year and 625 year after and 600 year after and 575 year after and so on and so on...eventially the market will crash but not in the beginning as everyone is expecting but at the end when final capitulation occurs...unfortunately real-estate will die a slow death but it will die and leave many broken lives in its wake...MANY will be bankrupt when the dust finally settles 10-15 years...stay cash and ride the interest rate cycle up...10% on a 30 year not far-fetched within 5 years...i currently rent and will continue to pile up cash and let my interest pay for ever increasing nicer places at no risk to myself...that is the smart game...stay outta stocks and real estate and just go cash short term maturities for now and be patient and save...save...save...reduce debt exposure and save...

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  4. That's interesting they brought up jobs. Is D.C. #1 worldwide in job growth?

    When the average condo/home in 'urban America' is $500,000+, how is America gonna compete with China and India where the average is a fraction of that?

    The higher and faster prices go up, the faster jobs will get outsourced to other countries.

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  5. DC Condo Watcher -- I agree with Anonymous, though he/she probably knows the subject in a lot better detail than I do. When rents are cheap relative to owning, and when rents are likely to stay stable or come down farther while home prices fall, I can't think of any logical reason to buy. So that leaves only emotional buying decisions.

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  6. It's probably very likely that the monetary VALUE of a condo in DC will continue to decrease in 2007, and perhaps beyond, it's useful to remember that we all got in this housing mess when people started to think of their homes as investment. I don't want to make a quick buck or (or loose it either) - I want a nice place to call home, that I can paint different colors in different rooms, and make it my own. If I live in a place for a couple years, and then have to sell because I'm moving away for personal/job reasons, that it'll be nice to not loose any money. Problem because when people expected to make a bundle on housing - stocks are for investing in companies. Housing isn't - it doesn't provide inherent returns like a company selling goods and services for profit.

    To make money, invest in the stock market - that's what it's for. BTW, Google QUADRUPLED already!! :)

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  7. Prices are holding says a report just issued by DC realotrs. Look here http://dcbubble.blogspot.com/

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