August 8th, 2005, 06:24 PM
...According to CNN that is. :) I've been a troll on these boards for a while and have read quite a bit of speculation about the housing bubble bursting. People are afraid that the price of real estate will drop dramatically after the condos are built. Well I found an article, America's riskiest real estate (http://money.cnn.com/2005/08/03/real_estate/buying_selling/pmi_riskiest-markets/index.htm), that gives Miami-Dade County a risk rating of 16.6%. That's lower than a lot of other counties I reccomend you check out some of the other real estate links found on that page. They can be pretty insiteful.
August 8th, 2005, 06:29 PM
By the way I RECOMMEND that everyone use spell checkers. They can also be pretty INSIGHTFUL .
August 8th, 2005, 07:37 PM
Yep...it's still driving me crazy that people have just accepted the phrase "real estate bubble". If it is printed enough in a newspapers do the masses have to pick it up and make it a part of the vernacular?
Bubbles burst instantly. Slightly faster than a Internet stock sector could burst instantly.
My challenge remains...I'll give one beer for every newspaper article that uses the phrase "real estate bubble" that occured BEFORE the stock market crash in 2000.
Stocks trade internationally - the price of Dell is pretty much the same if you buy in NYC, DeMoines, or Rome. Not true for RE, it is distinctly local.
With many buyers and sellers, a stock can be sold nearly instantly - it is very liquid. Even with a ready willing and able buyer, you can rarely sell a home is less than 7 at the fastest.
Real estate can be purchased using leverage like stocks. But if the price goes down on a stock you get margin call and are forced to sell. That is not the case on a home or investment property.
Real estate bears very little similarity to a Nasdaq stock, so how is this terminology so easily applied?