Why there's a bubble in housing - pretty clear
 

This is an article from one of my favorite writers on macro and micro-economics. He always finds really interesting viewpoints about subjects:

http://www.investorsinsight.com/otb_...?EditionID=149

Very interesting article with lots of great graphs.

For me, it's the deviation of the price of rent vs mortgages. Here in San Diego, housing is rediculously overpriced compared to rents. It makes much, much more sense to rent here (as it does in many other cities)..

Yep, my rent is $1800. A mortgage would probably be around $2300-2800.

:(

people need places to live, premium land is going to run out

nice article

why anyone would live in cali is beyond me. Come to the midwest and live like a king, and none of this ridiculous bubble nonsense

there is no bubble in property. don't beleive the hipe! things might not always go up but they'll never go down!

tony

the article is making me think now..

That is fucked, you pay $1800 a month for rent?? Man where do you live Tokyo? :winkwink:

But think if you only paid $500 more a month to a mortgage at least that $1800 would'nt be going into your landlord's pocket but into your own home's equity...

Something to make you go Hmmmmmm.... ;)

DH

maybe I have one too

:) umm 1800 is cheap DH o DL :)

For Tokyo.

or just make more money and live like a king here in Newport Beach, CA. :2 cents:

The reason for the increases is that it's easier to get a home loan today than it was 15 years ago. So this has created a whole new group of people entering the market, and supply could not meet demand. So prices went up.

Why live in Cali? the weather, the weather, the weather...oh yeah, the girls and the beach are pretty damn nice too.

The surfing sucks in the midwest :winkwink:

Another factor that I haven't seen mentioned is that the population of the middle states has been migrating to the coasts over the last 20-30 years. Like my grammy used to say, "god aint making no more land".

check it

http://biz.yahoo.com/brn/050716/14750.html

LOL you know how much I'm paying. :disgust You saying i'm CCCCCRRRRRAZZZZZZY? :winkwink: