Real Estate Market Will Be Fine by 2011
That’s what the National Real Estate Investor magazine says, anyway. Well, not fine, exactly, but they predict that another couple of years of “stagnant job creation and tepid economic growth” will yield better results come 2011. Dr. Rajeev Dhawan — one of the economists they consult — “is projecting real gross domestic product growth at…
That’s what the National Real Estate Investor magazine says, anyway. Well, not fine, exactly, but they predict that another couple of years of “stagnant job creation and tepid economic growth” will yield better results come 2011. Dr. Rajeev Dhawan — one of the economists they consult — “is projecting real gross domestic product growth at a rate of 1.4% in 2008, decelerating to 0.5% in 2009 before beginning an anemic recovery to growth of 2.2% by 2010,” they write. Banks will rebound, they say, and oil prices will drop, and maybe inflation will fall, and, after the rough patch, the world of real estate will recover. Even if that scenario plays out, here’s the big question: Since the New York City market took longer to fall, does that mean it’ll also lag on the way back up?
Economists Expect Real Estate Recovery in 2011 [NREI]
Sign of the Times. Photo by respres.
“I think US & European economies are in for long and slow deflationary period something akin to the Japanese since ’89 real estate bust”
Aw nope! Remember Japan had SAVING when their MAB popped. The US saving rate is terrible. The Asshats are living paycheck to paycheck and with the employment numbers coning out , we are in for bad times.
“If housing prices went back to the levels of 5 years ago I think most of us would shrug and go on with our lives. ”
This is why the bust will have devastating effects! Lets say in 03 you could buy a Brownstone in Asshats Hill for 550k. Now in 07 that same house is worth 1.3 million. You go like a asshole and “refi” because you want to open up a Thai restaurant in the Ghetto because you read the Hype-Fuck of Brownstoner and beLIEve that the Asshats are coming your way. Now the whole thing goes BOOM! You have 1. a underwater house 2. a failed business 3. you are in denial about you situation. You decide it’s time to back to Kanas, Ohio, Iowa or whatever fucking farm hell hole you come from. Now you walk away and the lender takes back your “investment”. Now that house is abandoned and Pookie and his Homeboys opens up a pharmacy and you know where it goes from here.
This is why I want you stupid mother fuckers to take that bet! Buy a Brownstone and see housing will rebound in 2011…
The What
Someday this war is gonna end…
If housing prices went back to the levels of 5 years ago I think most of us would shrug and go on with our lives. NYC is not some bedroom community of a midlevel city that you ditch when hard times come. NYC is a place where people hunker in for the long haul, where established neighborhoods provide roots and social networks and infrastructure that is extra-governmental. Prices of 5 years ago would not be a disaster for anyone except those who were looking to real estate for a quick buck. Don’t know how many people here that includes but I don’t think that is too many of us.
Prices going down to 5 years ago is also not a total collapse of our banking system I might add, as you are calling for on October 16th DOWhat.
I think US & European economies are in for long and slow deflationary period something akin to the Japanese since ’89 real estate bust. Inflation has been the global story for the past several years but deflation- assets, dollars, & commodities, will be hallmark for the next decade plus to come. There aren’t enough credits in the world to sustain the American & European lifestyles and thus global markets & prices have to adjust to decreased demands.
I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011. I would like some one to please explain why Real Estate prices will rebound in 2011.
The What
Someday this war is gonna end..
Here is another factor Jobs and the Economy.
U.S. Economy: Payrolls Drop, Unemployment at 6.1%
“Sept. 5 (Bloomberg) — The U.S. lost more jobs than forecast in August and the unemployment rate climbed to a five- year high of 6.1 percent, a sign that the economic slowdown is worsening two months before Americans elect their next president.”
5 years ago, That was the start of the Mutant Real Estate Bubble! Now pay attention Boys and Girls. Housing prices will go back to levels of 5 years ago. That means all of you equity gets wiped out. When the Asshats find out that their house is worth less that hey paid for it, they will “walk away”. It’s happen now in California and Nevada 2 of the largest “subprime” spots in the US and it’s coming this way.
“It certainly increases the probability that we really are in a recession,” William Poole, former president of the Federal Reserve Bank of St. Louis, said in an interview with Bloomberg Television. “It is a weak number, including the revisions.”
The Unemployment numbers are getting bad and those tenants you depend on to help with the mortgage will find themselves in a bad spot. Pay my rent of feed my kids…
The What
Someday this war is gonna end….
DOWhat–both of your personalities are playing so nicely with others today. Well done.
Read that article about the Chinese Central Bank. It certainly seems that if they did decide to dump all of their US bonds and securities it would screw us over big time. But I was struck by this line in the article:
“Chinese officials have suggested in recent comments that they are increasingly interested in stopping the yuan’s rise, and thus are willing to continue buying foreign securities to support the dollar.”
What say you DOWhat?
I think Aussie’s point is very well taken. If you do have the time and flexibility to wait I am sure that is to your benefit right now. But it is not an automatic thing that you will wait and then find the property of your dreams for a great price. Many people, myself included, have personal circumstances that make waiting too long very difficult. Hence my decision to buy now. People who wait and put themselves in difficult living circumstances might get what they want at a better price in a year or two, but they might not and then they will have spent a couple of years with their lives on hold for nothing.
DOW: When you say approaches 0 on a year over year basis; do you mean that the average monthly reading over a 12 month period (which is currently declining) shows no change?
The index was @ 74.41 back in 1987 and will never reach zero so I assume you are talking about yearly average change. Is that correct?
Good Friday Asshats. I know this post was for me, Ok let’s go!
Remember I said after the Olympics China was going to start dumping US debt on the market? Well Lookie here…
Main Bank of China Is in Need of Capital
http://tinyurl.com/6oac82
“Those investments have been declining sharply in value when converted from dollars into the strong yuan, casting a spotlight on the central bank’s tiny capital base. The bank’s capital, just $3.2 billion, has not grown during the buying spree, despite private warnings from the International Monetary Fund.”
Due to China, Japan and OPEC States buying huge amounts of US debt this has distorted interest rates and cause inflation to spike.
I would like some one to please explain why Real Estate prices will rebound in 2011. We are in the greatest asset bubble know to mankind and when it blows it will be devastating….
The What
Someday this war is gonna end…
I know you STILL want everything to be alright but, the clock is ticking.