There is NO real estate “bubble.” The slowdown appears to be psychology oriented and has been egged on by constant articles and comments in the press. The reports are greatly exaggerated and inflammatory and designed to cause trepidation amongst consumers. It is a known fact, that negative news sells many more papers and garners more attention than positive news.
Consider the following facts: Appreciation rates are slowing but not declining. That means prices in most of our market areas will continue to climb but at a more gradual pace than in previous years. The economy is healthy in our area and is generating jobs. This leads to continued demand for real estate. ...
The fundamentals leading to a continued vigorous real estate market are strong. There are 78 million baby boomers. Single women are the single largest growing segment of our population and they buy more real estate than other segments of the population. There is still a high rate of immigration and as many as 25-30% of houses purchased are purchased by someone not born in the U.S.
So, in contrast with the past few years, housing is slower, but market fundamentals are still very strong.
Friday, October 17, 2008
Flashback 2006: Realtor Marlene Goldberg said no bubble
Two years ago today, Realtor Marlene Goldberg chose to shoot the messenger for "exaggerated and inflammatory" bad news about the housing market:
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Flashback, 2006, 2007, and 2008: Thousands of blog commentators who rent stated that their "money is better off in the stock market than in the housing market."
ReplyDeleteFlashback, 2005, 2006, and 2007: Thousands of blog readers learn that there is indeed a bubble and start buying PUT options and short positions in housing and financial sectors. Lesson learned? For you sir unfortunately no.
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ReplyDelete"There are 78 million baby boomers."
That may be an undeniable fact, but not ALL of the 78 million are rich,
not all of the 78 million are wealthy,
not all of the 78 million are able to buy houses nor are all 78 million willing to leave their current homes.
The myth that 'the baby boomers will save our housing market' completely ignored the fact not everyone who is a boomer is rich.
Not all boomers have good paying jobs, and for those boomers who do make good money not all are doing well after taxes (many live paycheck to paycheck in spite of their high salaries)
Has anyone ever done a study or survey as to the net worth of boomers? I have a feeling not all of the 78 million would fall into the category 'wealthy' let alone 'rich'.
Flashback, 2006, 2007, and 2008: Thousands of blog commentators who rent stated that their "money is better off in the stock market than in the housing market."
ReplyDeleteFlashback now: Lance still doesn't know what a straw man argument is.
By the way, to address the other anon's question, yes there have been studies on the net worths of baby boomers. If I remember correctly, most are actually in shockingly bad financial shape and nowhere near where they need to be for retirement.