"To get a clearer picture of how things may play out, FORTUNE turned to Moody's economy.com and home property-valuation service Fiserv CSW." The article is republished on CNN.
In the report lists expected price changes in the top 100 metro areas for 2006 and 2007. For example. Of the these 100 cities, they expect only 16 to have nominal price declines in 2006. Then in 2007, 38 metro areas are expected to have price declines.
In Bakersfield, they expect the median price which currently stands at $286,300 to fall by 0.80% in 2006 and 3.00% in 2007. That's laughable. Price declines will be much greater in Bakersfield, CA. Most of these predicted price declines are minimal (especially for 2006) . Bubble Meter is more bearish.
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Here's today's post for all you bubble-heads:
ReplyDeleteEnron and Home Equity Wealth
"Sometimes when a trend continues for a long enough period of time, people come to accept the trend as just another fact of life. Despite initial skepticism, if events continue to unfold in the same manner month after month, year after year, people tend to forget their initial misgivings.
...
But what if it turns out that the real estate market of 2005 turns out to be a lot like the energy trading market of 2001?"
Does it really matter what the analysts are saying? They also predicted DC will add 1.6 million new jobs by 2030!
ReplyDelete"The verdict is in. According to the Association of Foreign Investors in Real Estate (AFIRE), “Washington is the top urban real estate market in the world.” It is no wonder people want to move to the Washington area. Job creation is fueling the economy and in turn the need for additional housing, schools, office buildings and commercial facilities. The Metropolitan Washington Council of Governments projects that the region will add 2 million new residents and 1.6 million new jobs by 2030."
I have serious doubt about the mental health of these folks...
Here is a good blog on DC's housing bubble. I always like to post there. Check it out!
http://www.businessweek.com/the_thread/hotproperty/archives/2005/07/washington_dc_b.html
over on http://housingpanic.blogspot.com we're discussing the same thing - their data is not only wrong, it is laughable
ReplyDeleteeven the median prices listed are incorrect