Topic: 7 reasons for a bull market

[Jack Morris]

As usual, energy leads the way. I'm just wondering how long it will be before the housing bubble crashes. It already has in certain areas of the U.S. and speculators got a severe bufueing for playing the gambling game with real estate.

On the other chart, look at how our govt. is spending like there is no tomorrow.

Finally, our boys and girls in uniform will start coming home for good, this always brings confidence into our markets.  God Bless them ALL!

[toasty0]

The housing market will not crash until the Chinese (China) re-evaluate their money anoth 5 to 25%. That will casue the Fed money market to increase rates to attrack other investors/buyers and that in turn will place pressure on Mortgage rates to rise to 7+%, and that will be the break point for prices and volume of sales.

I'd say another 5 to 7 years before tha happens.

[KBF-Angel Slayer]

Depends on the market.  There are markets that are already on the point of popping, due to refinancings and homeowners and mortgage companies finding appraisers who are pushing values way to hard.
   A good indicator of when a market is going to pop is watching sales.  When you start seeing houses staying on the market for over sixty to ninety days, then it is over priced, and thus the market is getting top heavy.  You see a proliferation of these, and you know not to invest.
   Everybody wants top dollar.  Unfortunately, it is not an infinite liimit.

[Jack Morris]

plus one Angel, you did your research. I believe Ravok lives in east Florida? Besides Miami, now is a time to take those high prices and sell. I'll give you the lowdown on the areas later, I do not want to get sued for giving out word for word print.

BTW Angel, I found a real estate guy that will offer the estate properties for 4%! Does that rock or what?  He's young, educated, and hungry for the kill.

[toasty0]

Depends on the market.  There are markets that are already on the point of popping, due to refinancings and homeowners and mortgage companies finding appraisers who are pushing values way to hard.
   A good indicator of when a market is going to pop is watching sales.  When you start seeing houses staying on the market for over sixty to ninety days, then it is over priced, and thus the market is getting top heavy.  You see a proliferation of these, and you know not to invest.
   Everybody wants top dollar.  Unfortunately, it is not an infinite liimit.

Of course it depends on the market. That is a given I would hope and not be an oft repeated cliche.

This market, unlike the one of the late 40s, and again the late 70s, is not a market of demand, per se, but one of cash and cheap money. Understand that and one understands the rise and fall of this realestate market. Failure by the investor, and even the little guy, to graps that fact will lead him or her to be smashed like bug on the windshield of an oncoming Peterbilt.

[Jack Morris]

I agree with you T, you would not believe how much electronic cash flows through the market every day, I can only imagine what real estate is like.

7 areas that are very high risk of crashing, but do not worry, Las Vegas is not on the list. Enjoy your windfall.

[toasty0]

I agree with you T, you would not believe how much electronic cash flows through the market every day, I can only imagine what real estate is like.

7 areas that are very high risk of crashing, but do not worry, Las Vegas is not on the list. Enjoy your windfall.

Actually I'm really uncomfortable with this upsurge in values. My bones ache over this sudden false economy something like this creates. It create cash while at the same time shutting out entry level homebuyers. Look at Seattle to see the results. One result is the closing of schools. Not for a lack of budget and funding, but for a  lack of young families with children to fill those schools.

This is a boon for us tail end baby boomers, but a complete shut out of the generations following us into the market. This will have terrible social consequences in the upcoming years.