[quote]LIFTICVSMAXIMVS wrote:
pittbulll wrote:
I know it is just my opinion, but I believe the housing boom, is simple inflation.
Yes, when money gets pumped into a particular sector disproportionately the effects are inflationary. Inflation is in terms of prices – the dollar buys less than it did before. Supply and demand for both money and housing inflates prices.
The only reason housing boom halted was because wages were not keeping pace. The cost of labor has not kept pace with anything Food, Fuel, or Housing.
The boom halted for many reasons and it would be hard to understand every exact reason why. The key component is that there is now an abundant supply of empty homes waiting to be bought. Somewhere before the bust rates got readjusted and this caused a problem for many sub-prime debt holders thus compounding the problem.
The bust is on two fronts: those still holding property they
can no longer afford and the financial markets who have lost their investment capital due to foreclosures, etc.
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I believe the whole problem revolves around, wages of the working class being suppressed by the abundance of cheap labor. That is why I am opposed to Illegal immigration.
When I were a young man the haves had twice as much as the have nots. Today I believe the haves have 10 to 20 times the amount of the have nots
[quote]Zap Branigan wrote:
Defekt wrote:
When is this expected to fix its self?
I’m 16 now, and will probably purchase a home between the ages of 23-27, will prices still be dirt cheep then?
We will probably go through one or two cycles before then. It is impossible to say what it will be like then but if population keeps growing it will be harder for you to purchase anything with land.[/quote]
Did you read BB’s link to the ‘Economist’ magazine? The housing bubble is worldwide and has a paper value equal to all the wealth in the world. Its the biggest bubble in history, dwarfing the 1920s.
[quote]Headhunter wrote:
Zap Branigan wrote:
Defekt wrote:
When is this expected to fix its self?
I’m 16 now, and will probably purchase a home between the ages of 23-27, will prices still be dirt cheep then?
We will probably go through one or two cycles before then. It is impossible to say what it will be like then but if population keeps growing it will be harder for you to purchase anything with land.
Did you read BB’s link to the ‘Economist’ magazine? The housing bubble is worldwide and has a paper value equal to all the wealth in the world. Its the biggest bubble in history, dwarfing the 1920s.
[/quote]
I have not read the article the Barrister has posted, but I am personally aware of at least 3 different markets. Being Arizona (Phoenix metro. Area) North Eastern Ohio and South Dakota. I am also aware of parts of Michigan. I am by no means an expert, but I would invest in any of those areas. None of those areas are alike. In my opinion Ohio Specifically N. E. Ohio never saw boom. Az. Had a big boom. To my understanding South Dakota is booming now. I would bet that it was not so much real-estate had a boom world wide. But mortgage industry had a world wide boom. Peace