Posted on 10/02/2012 7:09:51 AM PDT by blam
The reason for housing prices going up is the lack of available homes for sale. It’s a supply and demand issue and the supply is very low right now so it’s pushing prices higher.
Alternate headline. The Price of Garbage, Going Up!
Meanwhile here in western washington, the values are in free fall.
You are so right. Chinese money. In the area around MIT and Harvard the Chinese are bidding with cash for a fast closing. They come prepared with a list of their bank accounts to document that they have the cash - a lot of it. They’re bidding way above asking price if it’s what they want - a brick building near Harvard. A one bedroom place in a good building near Harvard Sq went on the market for 895K and was under agreement immediately. Probably for more than asking.
Good news for banks selling fiat debt to consumers. But absolutely horrible news for consumers.
The only good news is for people who bought into the bubble and are trying to get out. But who profits from this? The banks selling the mortgages and the (new) land owner class of housing speculators.
If the market turns the banks will get bailed out and keep their notes after foreclosure. Not so for consumers.
Has employment gone up?
Have real wages increased?
Has workforce participation increased?
Gee, lets play this with commodities and groceries and the banks can offer loans for these too! That will also be great as prices rise. I could sell the milk I buy before it expires for a 15% profit! /S
Also, foreign money. The relative value of the dollar makes our real estate look very attractive to foreigners.Good point.
Every day things look, feel and stink more and more like the Carter years.
Obama hasn't invented time travel to the past but he sure knows how to make it feel like he has.
What will happen when the 3.8% tax buried in Obamacare comes online Jan 1st, 2013?
That will hammer the real estate market.
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