Carl leason

A Housing Bubble Within a Bubble

Mark,..There are plenty reasons mentioned above that make it reasonable to buy a house. But, first and formost, look at housing prices, inflation adjusted, for the last 100 years and the long term trend is upward about 5 pct. a year to buy a house.. , yes,..prices have come down from it's peak about 6 months to a year ago, but there are two very good reasons why this cannot continue,..We still are receiving immigrants by the 10's of thousands a year. The Mexican border is still wide open and so is S. FL to the Cubans, people are afraid to invest in Real Estate in foreign Countries because of continuing instability of foreign Governments and the foreign Gov. taking of property. That's why people may hate our Gov. but love to buy here because it is one of the few places left in the world where buying a house is a safe investment ! Housing is bargain priced now except in places like NYC or CA, etc. but most of the US has exceptionally cheap prices. Check out prices in the Heartland, like MO and tell me that prices are too high ! Also, in the Carolinas where the average Joe Blow can buy a decent house for $150,000. Housing is cheap because our Gov. policies have allowed any country esp. China to import to this country but we don't manufacture anything anymore. So, wages are low and that will keep prices low. Prices will not go up until we start exporting manufactured goods and not just agricultural products. Foreign Governments have so many paid lobbiests in Wash. DC that it's hard to find a home there also. And, unfortunately, that's the real problem, Our politians have been bought and paid for !
Until we start manufacturing products, and exporting, the situation will stay the same as it is right now....So, if you have the money ,..go buy that home, make the wife and yourself happy and in the long run, it will be worth more ! This piece from someone who has been a lic. Realtor and investor since the mid 70's ! My only regret is that I sold some really nice properties that I should have held on to. Listen to what the NAR and FAR Realtor Associations have been saying for months,...we are at the bottom now,...the only thing holding back sales in Fl is way too high R.E. Taxes and Ins. but just go one state North to GA, SC, NC etc. and you will find some increadable bargains and mild climates, great beaches, etc. and don't complain to us in the future about the opportunities you lost in the year 2008. ! LC