The Risks Surrounding A Decade-Long Run-Up

The National Post reports from Canada. "Areas to the west are seeing the same listing crunch that has characterized Toronto proper, which means that a growing pool of buyers is competing for an inventory that can’t keep up with demand. 'We’re setting records left, right and centre. I’ve never seen...
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The ­Beginning Of Price Capitulation

A report from the New York Observer. "In 2011, in Nassau County five homes were sold for more than $10 million. Four were sold to buyers from China. Of those, Shawn Elliot sold three. Mr. Elliott estimates that today more than 50 percent of houses traded on the Gold Coast that cost $5 million or...
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A Boom Based On Unshakeable Faith

I suggested a topic on bubble peaks. "I was pondering some recent news and thought about the parabolic nature of manias. It’s discussed at this link among other places. A parabolic blow off is more than a spike on a graph. In participant terms, it reflects an extreme optimism, even a frenzy,...
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There Wouldn't Be A Problem If Prices Had Kept Going Up

It's Friday desk clearing time for this blogger. "According to the California Association of Realtors, the median home price in L.A. County was $390,000 for February 2014 – up 15.2 percent from the same period last year. In Orange County, the median home price last month was $677,000, up 11.6...
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It Was Going So Crazy The Past Two Years

The Mountain Mail reports from Colorado. "Multiple offers. Property selling in days. Low inventory and plenty of buyers with cash in hand. Is it 2007? No. But Salida’s real estate market is starting to act like it. 'We’ve definitely seen multiple offers and back-up offers,' said Pinon Real Estate...
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In The Past, Money Would Pour Into Your Pocket

Xinhua reports from China. "Puzzled Chinese property developers have a string of questions. No specific control or fine-tuning policies were mentioned in the government work report, which outlined this year's reform priorities at the just-concluded annual parliamentary session. But the sweeping...
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Investors Begin To Offload Their Portfolios

The Desert Sun reports from California. "Canadians comprise the bulk of foreign buyers in the desert. They typically buy homes during March to May. In 2013 during that period, 375, or 98 percent, of 381 publicly recorded sales had a mailing address from Canada, according to DataQuick. But HK Lane...
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Why There Is No Housing Bubble

A reader suggested a topic on why there is no housing bubble. "HA says he can build a complete house for $55/SF, including land, permits, financing, construction costs and profit. If that was true, all these out of work builders would be building millions of houses and selling them, solving the...
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