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March 29, 2005
Housing bubble?
Probably not nationwide, but things like this worry me: (NY Times)
Premonitions of a bubble on the verge of popping do not ruffle those who are bullish on real estate. In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely.
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."
Oh dear.
And on the radio news (the news, mind you) was a one line quote from some broker or banker (I forget which) who said that with interest rates rising it might be time to look into an adjustable rate mortgage.
Penny wise and pound foolish. What are these people thinking?
Posted by William Polley at March 29, 2005 4:21 PM
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» Bubble trouble? from New Economist
The biggest problem with asset bubbles may not be deciding what to do about them - but knowing if you're in one. Take the US housing market. Calculated Risk, via Angry Bear, say's we're in a bubble:Nearly everyone now knows there is a housing bubble, b... [Read More]
Tracked on March 29, 2005 11:16 PM
Comments
Your comments on bubbles' troubles are quite insightful.
Posted by: Jason Milano at March 30, 2005 10:54 PM