- Roughly 40% of houses sold were for speculative reasons.
- November sales fell 22% in the West. Existing home sales fell and the number of existing houses put on the market in November was the highest it has been in the last 21 years.
- "Investors are prepared to buy houses they will rent out at a loss; just because they think prices will keep rising -- the very definition of a financial bubble."
- Housing affordability is abysmally low.
- Housing starts nose dive.
- The housing bubble is bigger than the tech bubble of recent memory.
- Two-fifths of all private-sector jobs are housing related.
- 90% of GDP is accounted for by consumer spending and residential construction.
- Traditional, conservative loans have been replaced by "creative" financing and account for about 40% of today's market.
- New steps will be taken to regulate low-interest, high-risk loans.
- Mortgage applications are now at a three year low.
- Gold prices are very high.
- The yield curve is inverting.
- Marin's real estate is now in "two-sigma" territory.
- And a crappy old PoS-of-a-house in Marin will cost you two-thirds to three-quarters of a million dollars.
Wednesday, December 28, 2005
Is the Writing on the Wall?
Gee, let's see if I got this right (in no particular order):