Home prices: no end in sight
+4
CroMagnon
Marathadi-Saamiyaar
MaxEntropy_Man
charvaka
8 posters
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Home prices: no end in sight
I was looking into buying early last year and I am kinda glad that I didn't. Although interest rates are rising which is another part of the story.
http://latimesblogs.latimes.com/money_co/2011/05/case-shiller-index-shows-home-prices-slide-into-double-dip.html
An index of home prices in the nation's largest American cities plumbed
new depths in March, pushing past a low set during the worst of the
Great Recession.
http://latimesblogs.latimes.com/money_co/2011/05/case-shiller-index-shows-home-prices-slide-into-double-dip.html
An index of home prices in the nation's largest American cities plumbed
new depths in March, pushing past a low set during the worst of the
Great Recession.
charvaka- Posts : 4347
Join date : 2011-04-28
Location : Berkeley, CA
Re: Home prices: no end in sight
and here we are hit by runaway inflation. real estate prices are going up and up. when will RBI be able to tame it?
Guest- Guest
Re: Home prices: no end in sight
Yay.Huzefa Kapasi wrote:real estate prices are going up and up. when will RBI be able to tame it?
Is the RBI trying to tame it? Elections are a couple of years away, so they will probably let it slide, no?
charvaka- Posts : 4347
Join date : 2011-04-28
Location : Berkeley, CA
Re: Home prices: no end in sight
why do you have to buy now? if there are no kids in the picture just continue renting. some of us are not in the same happy place you are. for those wanting to buy here in new england it's a funny kind of market -- except those who really have to sell people are putting off putting their house on the market. end result -- there are houses on the market, but nothing that is compelling. and the people who want to upgrade are kind of stuck. can't unload their property, so can't upgrade either. we need a catalyst to get things going.
MaxEntropy_Man- Posts : 14702
Join date : 2011-04-28
Re: Home prices: no end in sight
Huzefa Kapasi wrote:and here we are hit by runaway inflation. real estate prices are going up and up. when will RBI be able to tame it?
I expect some mistakes on the part of the Govt/RBI, and expect the housing bubble to leak out some air in the near future.
The RBI has to increase the rates which will push up the mortgages. Most Indians don't know about the ARM process, and will find themselves with their pants down. Also, expect the IT sector to go in for laying off the 40+ crowd and hire the 20+ singlets. Very few will move up the pyramid, with the rest sliding down - carrying with it the housing market (remember, Indian IT sector is already costly forcing them to open shops in Chinaland and Africaland - the writing is on the wall).
Marathadi-Saamiyaar- Posts : 17675
Join date : 2011-04-30
Age : 110
Re: Home prices: no end in sight
I am not looking to buy right now. My wife is in grad school, so don't want to tie ourselves down to any place. But I was looking at it from a diversification point of view. Right now most of my money is in Indian real estate (which is in a long-running bubble) and in the stock market here (401k + some "play" money on the side). I guess 35 is a big milestone when you start thinking of investing in less risky things than stocks and emerging market real estate. We are talking about buying this time next year. Not sure where the market will be then.MaxEntropy_Man wrote:why do you have to buy now? if there are no kids in the picture just continue renting. some of us are not in the same happy place you are. for those wanting to buy here in new england it's a funny kind of market -- except those who really have to sell people are putting off putting their house on the market. end result -- there are houses on the market, but nothing that is compelling. and the people who want to upgrade are kind of stuck. can't unload their property, so can't upgrade either. we need a catalyst to get things going.
charvaka- Posts : 4347
Join date : 2011-04-28
Location : Berkeley, CA
Re: Home prices: no end in sight
charvaka wrote:Is the RBI trying to tame it? Elections are a couple of years away, so they will probably let it slide, no?
http://economictimes.indiatimes.com/news/economy/policy/rate-hike-rbis-subbarao-goes-against-majority-vote-to-raise-rates-by-50-bps-to-tackle-inflation/articleshow/8655709.cms
Guest- Guest
Re: Home prices: no end in sight
When it comes to home prices in US, it is not a recession, it is merely bursting of a bubble, a bubble created in 1998.
If you look at home price data for last 20 years, you would see the exponential increase around that time.
e.g. Case Shiller home price index for Boston increased from 71.8 in beginning of 1987 to 78.1 at the end of 1997.
From there, it skyrocketed to 188 in the middle of 2005. Right now it stand at ~140, which is still much higher than historical trend line. Thanks to artificial increase in money supply (inflation), it will never hit the historic trend line.
If you look at home price data for last 20 years, you would see the exponential increase around that time.
e.g. Case Shiller home price index for Boston increased from 71.8 in beginning of 1987 to 78.1 at the end of 1997.
From there, it skyrocketed to 188 in the middle of 2005. Right now it stand at ~140, which is still much higher than historical trend line. Thanks to artificial increase in money supply (inflation), it will never hit the historic trend line.
CroMagnon- Posts : 418
Join date : 2011-04-28
Re: Home prices: no end in sight
I wasn't keeping up with this. Interesting... they are talking about capital controls and raising the liquidity ratios of banks. I wonder if they anticipate the bubble bursting real soon. Perhaps Desichatter has a point.Huzefa Kapasi wrote:charvaka wrote:Is the RBI trying to tame it? Elections are a couple of years away, so they will probably let it slide, no?
http://economictimes.indiatimes.com/news/economy/policy/rate-hike-rbis-subbarao-goes-against-majority-vote-to-raise-rates-by-50-bps-to-tackle-inflation/articleshow/8655709.cms
charvaka- Posts : 4347
Join date : 2011-04-28
Location : Berkeley, CA
Re: Home prices: no end in sight
charvaka wrote:I was looking into buying early last year and I am kinda glad that I didn't. Although interest rates are rising which is another part of the story.
http://latimesblogs.latimes.com/money_co/2011/05/case-shiller-index-shows-home-prices-slide-into-double-dip.html
An index of home prices in the nation's largest American cities plumbed
new depths in March, pushing past a low set during the worst of the
Great Recession.
>>>> While the general market trend is dismal, if you are looking in the bay area, there are certain markets that are holding up of late. If you are buying at the bottom of the market (or close to it), you are at least going to tread water. In the meantime, you do have the tax break. That being said, if you are going to buy, look at bank-owned properties first where you have a really motivated seller.
Kris- Posts : 5460
Join date : 2011-04-28
Re: Home prices: no end in sight
Marathadi-Saamiyaar wrote:Also, expect the IT sector to go in for laying off the 40+ crowd and hire the 20+ singlets. Very few will move up the pyramid, with the rest sliding down - carrying with it the housing market (remember, Indian IT sector is already costly forcing them to open shops in Chinaland and Africaland - the writing is on the wall).
highly likely. another decade, and i am out. forcefully or otherwise.
Another Brick- Posts : 1495
Join date : 2011-05-02
Re: Home prices: no end in sight
Both China and India are now expensive in terms of salary.
artood2- Posts : 1321
Join date : 2011-04-30
Re: Home prices: no end in sight
You can wait charv...so that you can buy a bigger house for a decent price.
I used to follow patrick.net for a while and got bored of that housing bashing...also drhousingbubble....yawn!
I used to follow patrick.net for a while and got bored of that housing bashing...also drhousingbubble....yawn!
Nila- Posts : 1485
Join date : 2011-05-03
Age : 45
Re: Home prices: no end in sight
a good forum i sometimes visit: http://www.bostonbubble.com/
lots of discussion is specific to the greater boston area, but there are also general RE discussions.
lots of discussion is specific to the greater boston area, but there are also general RE discussions.
MaxEntropy_Man- Posts : 14702
Join date : 2011-04-28
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