Posted by Michael A. Bardelli on February 28, 2003 at 09:12:29:
I guess I will have to pay attention to the other half of the story next time. Existing home sales are going to fall off as soon as interest rates start to rise again. The economy is starting to show signs of inflation. How do you cure inflation? Raise interest rates. Once that happens, kiss the real estate market good bye. Hopefully soon.
Michael A. Bardelli
Real estate bubble-thought to keep in mind - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on February 27, 2003 at 15:20:11:
I remember taking Economics 1B, because we closely followed the stock market. The stock market was reaching new hihs everyday and my teacher kept telling us to watch for the inevitable popping of the bubble. It would take place during the semester, he assured us, so we would have a front row seat to the worst crash since 1929.
This was in the spring of 1997.
The moral is, markets don’t obey reason, just fear and greed. It’s nearly impossible to predict when a market will peak or trough. The only way to know is to be in it-I knew in April 2000 that the Internet Bubble was over. But while we were in the bubble nobody knew when it would pop.
New home sales down 15% - Posted by Michael A. Bardelli
Posted by Michael A. Bardelli on February 27, 2003 at 22:12:26:
I must agree with your comment. As I watched CNN today(after going and visiting more homeowners in default), I saw the report that new home sales were down fifteen percent. I almost couldn’t believe it. You mean the days of people asking top dollar and above for their houses is almost over? Maybe the days of selling are over and it is time to start building up inventory again for the next inevitable market cycle. I guess I will wait for now until more data is on the street. Excellent post on market cycles. I just wish the people down the block would read it and realize that they are not going to get 150,000 for their 125,000 house.
Michael A. Bardelli
At last - Posted by Jeremy FL
Posted by Jeremy FL on February 27, 2003 at 16:41:05:
A sensible post about market cycles.
But existing-home sales at record levels… - Posted by mike
Posted by mike on February 27, 2003 at 23:25:02:
“new home” sales are new-home sales, not “new” home sales :-> Existing-home sales are at (recent or alltime?) record levels. Same source, other half of the story (CNN)…