The Housing Bubble Blog

Some economic numbers are out this morning. "Construction spending rose to a record level in February as home building hit an all-time high despite a weakening in home sales, the government said Monday." "Economists believe the housing sector, which has been booming for the past five years, will...

The Pittsburg Business Times reports on a new trend for realtors. "Looking to head off a sustained dip in the real estate market, some of Pittsburgh's largest real estate agencies are asking home sellers to do something that will mean less money for them and their agents: reduce their asking...

A look at how confusing issues become in a housing bubble. From Florida, "What a difference a year makes. A year ago, organizers of the Spring Parade of Homes of Brevard were working with a frenzied real estate market. One year later, the most commonly used word to describe the new-home market is...

One reader wants to discuss how we can prevent a housing bubble from occurring again. "I think we should talk about how a false housing boom can be prevented. I can think of some protective measures that could of prevented this false run-up of prices." "Lenders use to have check and balances on to...

The LA Times looks at a firm writing exotic loans. "For much of its 77 years in Santa Monica, First Federal Bank of California led an unremarkable existence. Nowadays First Federal is stirring up more excitement, on account of its emphasis on making relatively risky home loans. In fact, to listen...

Several readers want to hear your April 2006 predictions. "When do people expect y.o.y. declines in particular cities, and what do we suppose the subsequent excuses will be? It’s because of the World Cup!" One reply, "April will be the first month of YOY declines in DC." Another said, "It seems...

The Union Tribune reports on San Diegos condo bust. "During San Diego's six-year housing boom, few neighborhoods have been more exuberant than downtown. Construction of sleek condo towers tripled the housing stock. A few buyers, meanwhile, have begun to negotiate good deals. A 15th-floor unit in...

The Miami Herald reports on falling prices in Florida. "Around South Florida, many are doing what would have been unthinkable six months earlier: They're slashing the asking price of their houses, townhomes and condos, and even throwing in incentives. The Florida Board of Realtors reports that...

The New York Times has a look at how to spot a housing bubble. "Gary and Margaret Hwang Smith, economics professors at Pomona College, concluded that not only was the Los Angeles region not in a bubble, but many markets that others were calling overpriced, like Chicago or Boston, were probably...

Several readers want to discuss the cost of capital. "Topic suggestion: How much further will the ten year treasury note yield have to increase (a lot of mortgage rates are being effected too) before the housing markets really implodes." Another said, "Now that Ben Bernanke has been on the job for...

Have any housing bubble observations this weekend? The springtime open house season is in full swing in the southwest. Here are some from the topics thread: "Written by a Santa Barbara Realtor, 'Many buyers are taking a 'wait and see' attitude. Now that a soft landing can be expected, with interest...

Two reports on the humbling of a king. "Two years ago Miami developer Jorge Perez said the Las Vegas market was ripe for the high-rise condominiums he has built so successfully in Florida. But Sin City has not been kind to South Florida's 'Condo King.' In January Perez canceled a twin-tower condo...

Several readers responded to the idea of talking with friends about the housing bubble. "Any stories to share?; Friends don’t let friends buy Real Estate. Have any readers tried to convince a friend/acquaintance that right now is most certainly not a good time to purchase real estate? I did, and...

The Daytona Beach News Journal has this from Florida. "Skittish investors, leery of the air seeping out of the housing bubble, have left at least one area home builder awash with completed homes and no buyers in sight. Holiday Builders, the 30th largest builder in the nation, is hoping to turn the...

Let's clear this bloggers desk for the weekend. "The inventory of homes for sale in the Washington metropolitan area climbed to 28,200 last month, meaning that buyers had plenty to choose from, but that sellers had to sit and wait for offers. Last month's inventory was huge compared to February...

A pair of reports on Californian housing markets. "Housing prices in Nevada County dropped for the third month in a row in February. The median price of house and condominium title transfers recorded at the county Recorder's office dropped to $459,000 in February, compared to $470,000 in January."...

The Aspen Times has a rare report on that Colorado town. "Getting the straight poop on Aspen real estate from most brokers is impossible. Unable to get at the truth, I contacted my old friend Turner Hicks to shed light on the local real estate market." "Q: Do you think owning a house in Aspen is a...

The Las Vegas News Journal has some news on land prices. "Housing prices are flat, high-rise condo projects are canceling sales, and now land values have dropped by almost half in Las Vegas, local research firm Applied Analysis reported. The average price for an acre of vacant land in the valley...

Carol Lloyd got an odd feeling at the recent real estate expo. "It is ecstasy. It is apoplexy. It is beyond believing and yet painfully familiar. It's an aging real estate mogul who has found a second career as a trash-talking, self-help guru. Welcome to Woodstock for the equity generation,...

The Washington Times reports on the DC housing bubble. "The Washington metropolitan area's housing market cooled off during the latter half of 2005. For the first time since 1999, buyers began to be on equal footing with sellers. How much more will the market cool? Will home prices fall, or just...