A Brief History of the Housing Bubble

A really good overview and analysis of the U.S. Housing Bubble at OCHousingnews.com. The build-up, collapse, stimulus/supply mgmt. and current double dip all covered in detail.

http://ochousingnews.com/news/a-brief-history-of-the-housing-bubble

From 2003 to 2006, American lenders and borrowers inflated a massive housing bubble. From 2007 to 2012, this bubble has been deflating, but the bottom is proving elusive. The housing market is closer to the bottom than to the top, and if a viable solution can be found to bring supply and demand into balance, the tremendous affordability from low prices and low interest rates will help a bottom form in the near term.

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blueskies
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blueskies

http://www.zerohedge.com/news/shanghai-new-home-p

from Garths' blog:
he of throbbing penetrating prose

shouldn't affect the wet coast…………

VMD
Member

Continuing on the Chinese bubble theme:

[Bubble Watching: Hainan edition]

mind-boggling amount of empty condos.

"Local people said, however, that no local people would ever buy them. Those are for northerners. Asking local people on their views on when all these properties will be occupied, their answer is “never”.

While Ordos, Zhengzhou new district and others have been popularised in Western media as the “ghost cities” of China, a manifestation of the Chinese property bubbles, empty properties are just too easily found in China, just probably not at that kind of scale as one could see in those now-famous ghost towns."

http://www.alsosprachanalyst.com/real-estate/bubb

patriotz
Member

"if a viable solution can be found to bring supply and demand into balance"

That viable solution can be found near the front of any elementary economics textbook. It's called lower prices.

Meh
Guest
Meh

By The Limerick King

The China collapse has begun

The property trade is now done

Despite all the cheers

It's time for the tears

But blowing that bubble was fun!

http://www.zerohedge.com/news/shanghai-new-home-p
(From the comments section)

Anonymous
Guest
Anonymous

for those who keeps quoting Garth: sell your wife, she is in a bubble too!

Extremely rich Van h
Guest

@Meh:

Don't U know Great China has 20000 billion US in reserve.Us and Canada will collapse billion yrs ahead of our dear Motherland;For,Canada Chinese will help u guys to pull through the disaster if you guy cooperate with Chinese foreign and military policy.Leasing out Vanoucer to Chinese Navy would be a best antidose to help Canada.Chinese Army and Navy personnel will be shopping in Vancouver in millions.

chip
Guest
chip

@patriotz:

"That viable solution can be found near the front of any elementary economics textbook. It’s called lower prices."

Wouldn't it be nice if basic economics was taught in elementary school, from the effect of supply and demand on prices, to little words like debt, deficit, profit etc.

Why, at a time of record Canadian household debt and global economic crisis, is the UBC faculty of ed ramping up lessons on aboriginal history and social justice, but not basic economic literacy?

patriotz
Member

@chip:

Well first of all there is not an inherent conflict between teaching social studies and anything else.

Second universities don't determine what's taught in the schools, governments do.

Which brings us to the third, governments really don't want the population to be economically literate because there are too many special interests they are beholden to – the RE industry being the most obvious one at the moment – who don't want that.

Economic literacy used to be a necessary life skill which parents passed on to their children. We are now 3 generations past real hard times so that path is dying out.

NoNo
Guest
NoNo

you forget how to make a hyper link?

crashcow
Member

Lastest Case-Shiller Housing data is out. Tampa, Atlanta, Las Vegas and Seattle all made new post-bubble lows in November.

Updated chart showing total peak-trough % drop by city:
http://www.bespokeinvest.com/thinkbig/2012/1/31/u

Don't be a dick
Guest
Don't be a dick

@NoNo

You forget your manners, prick?

Best place on meth
Guest
Best place on meth

Follow up to yesterdays Martin Armstrong real estate coverage thread.

http://www.martinarmstrong.org/files/Global%20Rea

0x13
Guest
0x13

http://www.moneyville.ca/article/1124059–canada-

I was a little taken aback by the description of "an average person" who at 56 (circa 2005) was in debt $140k. This was spread over 15CC and a home mortgage – hopefully most of the debt was the mortgage. Still who has 15CC? They probably have a part time job just checking the balance on all those CC.

Best place on meth
Guest
Best place on meth

@crashcow:

Vegas has clearly overshot fair value on the way down which often happens when a massive bubble burst. It looks like a good investment now.

What do you say Vancouver homeowners, trade your run down hovel on Knight Street for 10 Vegas houses with swimming pools?

Live in the nicest of the 10 and rent out the other 9 for gobs of income while you enjoy your early retirement in a warm , dry climate?

Nah, never mind, you're too stupid to do that – in your dim minds there's no bubble in Vancouver because of <insert stupid <b>running out of land, Chinese money, everyone wants to live here narrative here>

alx
Member
alx

@0×13: In the article it says $140K was credit cards only. Mortgage was extra.

crashcow
Member

googled "china home prices."

smiling.

Devore
Member
Devore

Comment from unmentionable blog:

Sherry Cooper: “more like a balloon than a bubble. While bubbles always burst, a balloon often deflates slowly in the absence of a ‘pin’.”

DAVID LEREAH: “Balloons don’t burst. You can put air in a balloon and it can expand or you can deflate a balloon, where air comes out….But now air can come out of the balloon rather than the balloon popping.”

Who knew Sherry Cooper would be our David Lereah.

jumpin in
Guest
jumpin in

http://www.huffingtonpost.ca/2012/01/31/canada-ho

Canada Housing Market Beginning To Resemble U.S.'s Subprime Mess, OSFI Documents Reveal

Mortgageslave
Guest
Mortgageslave

@Best place on meth

I've heard that the property taxes can be quite ridiculous in the US as cities aren't getting the tax money they used to. Anybody know what property taxes are on a 120K house in LasVegas?

VMD
Member

Developer in China cloned entire world-renowned Austrian town of Hallstatt, an UNESCO World Heritage Site. Unfortunately, it's not sellin'. Zero buyer.

Nearby local residents are confounded by the "strange architecture" of this cloned town. "I don't understand why any rich people would want to live in this mediocre area"

Developer had advertised "everyone in China wants to live here".

Developer also planned to add sections that does not exist in Hallstatt, such as the entire street where Mozart was born.

Austrians are understandably enraged when they heard their treasured town is being cloned. A complaint had been filed to UNESCO.

<a href="http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2 Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D423945%2Flang%3Dschinese.html&act=url” target=”_blank”>http://translate.google.com/translate?sl=auto&amp…” target=”_blank”>Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D423945%2Flang%3Dschinese.html&act=url

VMD
Member

"in order to improve the realism of this piracy, the developer plans to introduce horse-drawn carriages and a lot of pigeons."

Yaya
Guest
Yaya

@VMD: "…and a lot of pigeons.”

Well, they'll never be hungry.. 🙄

patriotz
Member

@Mortgageslave:

Seem to be about 1%.

yvr2zrh
Member

Anyone want to have a look at V928909? any bet on which digit is extra? Looks like fat fingers at REBGV!!!

Anonymouse
Guest
Anonymouse

@patriotz:

"Which brings us to the third, governments really don’t want the population to be economically literate"

I like conspiracy theories.

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