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Boom and bust

Foreclosure map courtesy of RealtyTrac

The foreclosure problems are so heavily concentrated in California, Florida, Nevada and Arizona that each appears to be sea of red. While the Charleston real estate market was very strong with high demand and above average price appreciation in the early to mid 2000's and most every real estate agents would like to do as much business today as was done in 2005, the Charleston area did not experience the speculative frenzy that went on in those 4 states. 

An amazing article by Grainger David in Fortune written in May 2005 at the height of the boom will illustrate the anatomy of a bubble.

"They snap up real estate, flip it, then chase the next hot market.They're the new day traders--and they're dancing on the edge of a volcano."

Read Riding the Boom.

Published Friday, August 15, 2008 6:12 AM by Howard Arnoff

Comments

# re: Boom and bust

I'm seeing the stubborn sellers starting to crack one by one with price decreases becoming more and more frequent. I'm starting to see many small builders that built 2-3 spec homes that are now in the short sale process or are being foreclosed on. I viewed a house (new construction) last week that was originally 915k and has now been reduced to 599k! (short sale)

More affordable housing is good for the market.

Friday, August 15, 2008 9:13 AM by Claude Daigle

# re: Boom and bust

Claude, short sales don't matter, the bank won't even respond let alone approve them so the prices are phony. They'll be in foreclosure next year and you can buy it then.

Having said that, there are many great deals to be had and affordability is vital.

Inventory is ridiculous and those sellers who want to sell need to not only be realistic but flexible. If not, they should just take their homes off the market.

And I saw nearly identical homes the other day that were priced 20k apart. Worse yet, I had trouble getting in to see the higher priced one. They will not be selling anytime soon.

Friday, August 15, 2008 11:26 AM by Howard Arnoff

# re: Boom and bust

Whats sad is that I think even at $599 it's overpriced.

Also, any idea on the number of housing permits MT P is giving out each quarter...compared to past quarters?

Friday, August 15, 2008 12:49 PM by Claude Daigle

# re: Boom and bust

fewer than the number available.

Claude, you'll never be satisfied, think about house that meets your wants and needs first, the deal will come later.

Saturday, August 16, 2008 4:56 AM by Howard Arnoff
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