Friday, January 27, 2006

Pop?

It looks like the bubbles (or are they balloons now?) are beginning to pop as reviewed here, here, and here over at The Housing Bubble 2 blog. We'll know better in the Spring. Is the Bay Area immune? If the real estate world falls apart around us will it have no effect on us? I seriously doubt it, but what do I know? Japan has a scarcity of land too but that didn't stop their bubble from busting.

5 Comments:

Blogger Rob Dawg said...

If the behavior of the national housing bubble is described as a bubble popping then then the impending reaction of the Bay Area should be called The Hindenberg.

Jan 27, 2006, 1:43:00 PM  
Blogger jack mehoff said...

Good image, Robert. Have you seen the Remax Realty logo in the Inland Empire? Yep, it's a hot air balloon! Betcha they are scrambling to find a new logo....

Jan 27, 2006, 2:33:00 PM  
Blogger SFWoman said...

I heard an economist talking about the analogies between the Japan real estate bubble and the Bay Area bubble, and the exact same arguments were used about why the real estate couldn't lose value in Japan as are still being used now by some people I know in the Bay Area.

They didn't quadruple the land area of Japan in 1990, and real estate tanked. It can happen here.

Jan 27, 2006, 4:10:00 PM  
Blogger Camille Roy said...

I think the whammy is not the high housing prices. It's the fact they are not supported by a robust, well-paying, job market. Combine lack of income with lack of job security AND then add falling housing prices - that's toxic!!

Blame all the greedy companies who offshored our future.

Jan 27, 2006, 8:40:00 PM  
Anonymous San Diego dentist said...

Great post...yes the real estate decline is really well underway.

I just read another very insighful article by a San Diego real estate broker, it too is MUST READ. It is located at:
http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

Feb 3, 2006, 9:14:00 AM  

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