Housing Collapse: A Global Domino Effect?
The United States’ residential housing market collapse is shaping up to be an international trendsetter, according to article in today’s Times. The mortgage meltdown that’s caused our bubble to burst is spreading to other countries that’ve seen rapid housing appreciation in the last decade or so, like Ireland, Spain, England, and Eastern European capitals. The…
The United States’ residential housing market collapse is shaping up to be an international trendsetter, according to article in today’s Times. The mortgage meltdown that’s caused our bubble to burst is spreading to other countries that’ve seen rapid housing appreciation in the last decade or so, like Ireland, Spain, England, and Eastern European capitals. The article notes that the “synchronized global slowdown, which has become increasingly stark in recent months, is hobbling economic growth worldwide, affecting not just homes but jobs as well.” Beyond Europe, prices are also going down in India and southern China. The worldwide troubles are largely being blamed on too-lax lending standards and over-valuation of properties. The situation threatens to sink vibrant economies in countries like Ireland and Spain, where residential investment has played an outsized role in bolstering growth. As new construction slows, unemployment is rising, and houses are sitting empty.
Housing Woes in U.S. Spread Around Globe [NY Times]
Photo by JohnLeGear.
“true Brooklyner who was here from the beginning 1997”
LMMFAO! You’ve gotta be kidding me. Please tell me I’ve been had by sarcasm.
“(as a true Brooklyner who was here from the beginning 1997, I know)”
I’ve been here since 1963. Was that BEFORE the beginning?
The real estate market will tank when we least expect it. It always does.
Yeah right 12:34, the overseas buyers are going to bail us out. That’s the dummest thing I ever heard. But then you’ve been here the whole time since 1997, I guess you know how everything works in Brooklyn real estate. No need to look at any statistics, yeah right reall smart.
rriigghhtt, 9:23.
irish carpenter: i just lost my shirt on an RE investment in my home country. so now, i’m going to “double down” by investing in a potentially declining market overseas. only now i’m also adding currency risk. keep dreamin’, man…
Here is the reality, Brooklyn is great, it always will be great, and just as everyone on this site repeatedly states it will continue to show great strength in the real estate mnarket, despite a growing trend to the alternative is nearly every other real estate sample. For those who want to argue this point, please refrain from citing economic indicators, or statistics that traditionally show a potential weakness in real estate, and just look at the fact that prices in Brooklyn remain high. It doesn’t matter if the economy slows, because Brooklyn’s market will still find sellers from oversees, and if the oversees markets continue to falter, well by the time it affects Brooklyn, the National economy will again be strong, so Brooklyn’s real estate will not be affected. To argue against these facts is to ignore reality that Brownstones in Brooklyn are still priced upwards. I don’t want to hear anymore hocus pocus statistics, science fiction theories on how economics work,or misstatements of past historical trends kindly just admit that Brooklyn is the best place to live (as a true Brooklyner who was here from the beginning 1997, I know) and that it will never suffer from a drop in real estate prices, so we can end this argument once and for all. Thank you!
If you want to know everything there is to know about the real estate boom in Ireland get David McWilliams book THE POPE’S CHILDREN, or, his latest, THE GENERATION GAME.
brownstoner/gabby should frontpage that link:
http://www.marketwire.com/mw/release.do?id=843390
So Brooklyn has gone bust, huh??
“Fort Greene saw a 170 percent increase in sales volume, the largest of all the neighborhoods, with 62 homes sold in the first quarter of 2008 compared to 23 for the same period last year. Overall prices also rose from $675,870 to $760,484, a 13 percent increase.”