Re: The sky is falling

[unclemick]

Re: The sky is falling

Yeah you rite!

There's a mini building boom around here - on/near the water, outside of levee protection, inspite of the difficulty/cost of flood insurance, and that fact that Isadore/Lilly in 2002 put the whole area under water causing moderate damage to those not high enough on pilings.

That's a bubble in my book. The 'new' rule says 15 foot pilings above reference ground which requires a survey since you're building in a swamp.

 

[charlie]

Re: The sky is falling

Ronin,

If Christy keeps smothering Nash it will be a
short series. BTW, Sac is only one notch above
Dallas in the matador defense department.

Marv Rule (at home, sometimes)

Charlie

 

[BusyMom]

Re: The sky is falling

Wabmester - re:home pricing - the cost of materials fluctuates with the interest rate as well. Rates low, materials high when rates rise, the cost of construction dips.

I am seeing a marked increase in foreclosure properties and we are not in a metro market. Another factor coming in to play is the boomers are selling their large homes and downsizing now that their kids are grown. Let's not forget those ARM mortgages everyone has. It's going to be a good investor market.

 

[wabmester]

Re: The sky is falling

Good points, BusyMom. It's pretty clear that this boom cycle is different from previous ones in that lenders are taking much more risk. Lower quality loans, higher loan-to-value, everybody's got a home equity loan, and lots of ARMs.

Eventually, it's got to mean lots of bargain homes on the market and a big hit to financial stocks.