Bubble, what bubble?
Monday, June 27, 2005
Loan regulators discount the idea of nationwide housing bubble
Does Nevada have the employment numbers to support a local housing bubble? The answer is YES according to this article.
"...Nevada recorded a 31.22 percent rise in home prices for the first quarter of 2005 over the same quarter in 2004. In the same period, it posted job growth of 6.7 percent, far higher than the 1.6 percent year-over-year national average.
Yahoo News
posted by author @ 9:59 PM,
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You know there's a real estate bubble when (part 2)...
Friday, June 24, 2005
4 bedrooms / 3 bathrooms / 3650 sq. ft. @ $949,500
Ouch!
posted by author @ 9:09 PM,
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Reno Nevada Rentals
It looks like a renter's market in Reno.
3 bedrooms / 2 bathrooms / 1265 sq. ft. @ $1,325
or you can have (same neighborhood)
4 bedrooms / 2 bathrooms / 2345 sq. ft. @ $1,600
posted by author @ 4:33 PM,
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No Reno Real Estate Bubble
Wednesday, June 22, 2005
It's very apparent from the traffic headaches and the highway construction to relieves those aches, that Reno is prospering. Those that speak of a bubble are nay-sayers with little proof of a real estate bubble locally. Nationwide, there may be an overall bubble. But the numbers for Reno: strong growth in building, strong growth in jobs and new businesses, and an increase in population, indicate a strong economy.
Jim Shabi, economist with the Nevada Department of Employment, Training, and Rehabilitation had this to say about the Reno housing boom: "The construction sector has long driven the region's economy and will continue to do so as thousands of homes and businesses fill in the remaining open space in the Truckee Meadows (Reno and Sparks) and beyond". He isn't surprised by the job and business growth, either: "Businesses from the outside are recognizing the growth here. It's a sign of a healthy economy."
Reno Gazette Journal
posted by author @ 7:16 PM,
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Housing market tumble forecast
Tuesday, June 21, 2005
Economists see bubble bursting by late next year
Sounds about right. I think that the quote of the year should go to UCLA economist Christopher Thornberg.
"Prices are not associated with reality"
SFGate.com
posted by author @ 9:39 PM,
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What Happens If Real Estate Goes Bust
Monday, June 20, 2005
"...froth in some local markets."
Here's a decent article comparing the stock and housing boom.
"The key difference is that stocks are purely financial investments. You can sell a stock on a whim, and you don't have to run out and buy another. By contrast, people live in houses, and if they sell they have to move -- which is both costly and time-consuming."
Yahoo Finance
posted by author @ 10:10 PM,
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Seven Harsh Truths About Real Estate
Wednesday, June 15, 2005
Real Estate Journal has a good article about some rather sad truths about Real Estate. I'm convinced that anyone who tries to downplay the market, or even preach about the impending downfall, is secretly up to their ears in real estate investments.
1. A house is an undiversified bet on a single piece of property.
2. Real estate doesn't always go up.
3. Leverage bites when you get it wrong.
4. A house is a long-term investment.
5. The big money is in the rent.
6. Home improvements aren't an investment.
7. Mortgage debt has to be repaid.
RealEstateJournal
posted by author @ 7:54 PM,
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Even the Feds Forecast Continued Housing Market Growth
Tuesday, June 14, 2005
The Office of Federal Housing Enterprise Oversight (OFHEO) analysis of the housing market points to strong growth nationwide over the past year: “Average home prices increased 12.50 percent from the first quarter of 2004 through the first quarter of 2005.” The Feds even forecast a strong increase in housing prices: “The HPI shows the rise in house prices continues at an extremely strong pace…”
For those of us investors in the Nevada market, we continue to see strong growth: “The biggest price increases in the House Price Index (HPI) during the past year occurred in Nevada, with a 4-quarter increase of 31.2 percent.” Reno experienced a 31.78% appreciation and Las Vegas experienced a 33.25% appreciation in one year. Nevada also has the second lowest Annualized Volatility Estimates in the Nation at 0.06825
OFHEO (.PDF)
posted by author @ 8:22 PM,
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You know there's a real estate bubble when...
Dozen indicted in Illinois real estate loan fraud
Link to hilarious news story
I like how the story refers to them, "in cahoots" and their "henchmen".
"Hastings and his wife allegedly bought a number of inexpensive houses in Freeport, Ill., and elsewhere, reports said. Their alleged henchmen would have minor repairs and improvements made to the houses in order to inflate the prices, reports said.
Hastings then allegedly sold the houses at inflated prices that were far more than he paid for them, reports said."
Oh my god! Sold the houses at inflated prices that were far more than he paid for them? You've got to be kidding me.
posted by author @ 7:02 PM,
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Housing Market Boom Seen Continuing
Monday, June 13, 2005
A no-brainer recipe for real estate investor success:
Easy Credit
+ Low Interest Rates
+ Affluent Baby Boomers
+ Immigration Growth
+ Limited Supply of Land
+ Growing Economy
= CONTINUED REAL ESTATE PROFIT!
CNN Money
posted by author @ 8:10 PM,
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Greenspan calls interest-only loans "exotic".
Sunday, June 12, 2005
"The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other relatively exotic forms of adjustable-rate mortgages are developments of particular concern," Greenspan told Congress.
Yahoo News
posted by author @ 5:11 PM,
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Is there a housing bubble?
Home sales paced to set their fifth straight annual record.
How about that? Surprisingly, the average 30 year fixed rate mortgage fell to 5.62% (a 15 month low). Is there a housing bubble? Probably, but that's not stopping people from buying.
"The use of nontraditional mortgages, such as interest-only loans, have grown in the last year and the realtors said those new mortgage products have also helped support sales."CNN Money
posted by author @ 12:12 AM,
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