Is the USA property market crashing???

[TheMainMan]

Could you guys over in the US tell me if the property market is crashing?

We hear it is in the press but I would like to know off people on the ground.

If so has it bottomed out and would it now be a good time to invest in a property over there or wait a while? There's a good exchange rate currently so I'm half tempted.

Where do you guys think will have the best long term capital growth i.e. 10years plus?

Cheers

 

[Francisco d'Anconia]

There's been an abundance of foreclosures because during the housing boom most people got adjustable rate mortgages without understanding that they should refinance before the fixed time period ended. Coupled with the fact that people purchased more than they could afford and so came the foreclosures.

Add to that the overall slowdown of the market because of people trying to sell these homes for more than the market can bear and that adds to the glut of homes available. For a country that has enough opportunity for majority of people to become wealthy, we don't really understand how money works.

 

[Bonhomme]

For a country that has enough opportunity for majority of people to become wealthy, we don't really understand how money works.

I'd say a majority of the people have the opportunity to become wealthy, but not that there's an opportunity for a majority of the people to become wealthy. Our society is definitely structured that a relative few will have a majority of the wealth -- even more so as of late, rapidly approaching "Third World" nation inequality.

 

[Bonhomme]

Regarding the peoperty market, it rarely goes down by much in any particular metro area, at least as far as well-mainteined non-foreclosure properties go. Usually, what happens is property values go stagnant for a long time until inflation brings them back in line.

Of course, if we're at the end of the inflationary period (which has really only been happening recently -- the value of Anglo-American money hardly changed from the middle ages through the early 20th century), the we may see a decline. of course, if there's a big economic collapse (which I wouldn't rule out), who knows what might happen...

 

[Francisco d'Anconia]

I'd say a majority of the people have the opportunity to become wealthy, but not that there's an opportunity for a majority of the people to become wealthy. Our society is definitely structured that a relative few will have a majority of the wealth -- even more so as of late, rapidly approaching "Third World" nation inequality.

It's all about knowledge (not to be confused with education).

 

[penkitten]

if we are paying 3 bucks for gas, how can we afford property?
sure prices are going down.

 

[Oxide]

3 bucks for gas is nothing. think about it - you can go 30 MILES for $3!!!!


Id stay away from the market as of right now, unless you are talking commercial or higher end properties.. but this is just one a$$holes opinion

 

[Francisco d'Anconia]

if we are paying 3 bucks for gas, how can we afford property?
sure prices are going down.

Three dollars a gallon is a heck of a lot less than what they're paying in the Europe yet they're looking at buying property here because of the exchange rate. Now what does that say about Americans?

 

[Bonhomme]

It's definitely more about knowledge than education, but I'd say capital is the most essential thing to have. One can get super-rich with knowledge and cleverness alone, but it is bloody hard to do. A decent amount of working capital (say, tens of thousands of dollars) makes it much, much less difficult.

Anyone with 100K US to work with would have to have virtually no business sense or little discipline if they couldn't make a million from it within a few years.

 

[penkitten]

our president is a texas oil tycoon and we are paying right at three bucks a gallon for gas, talk about idiotism.

 

[Francisco d'Anconia]

It's definitely more about knowledge than education, but I'd say capital is the most essential thing to have. One can get super-rich with knowledge and cleverness alone, but it is bloody hard to do. A decent amount of working capital (say, tens of thousands of dollars) makes it much, much less difficult.

Anyone with 100K US to work with would have to have virtually no business sense or little discipline if they couldn't make a million from it within a few years.

Even though it may not be millions, why is it that more first and second generation immigrants own more businesses than per capita when compared to their naturally born American counterparts? Now before anyone assumes that I have anything against immigrants I don't (as long as they pay their taxes). But why is it that people who are new to this country tend to be the ones who build businesses the fastest? Why don't more Americans own their own businesses?

 

[ricorico]

Because foreigners take advantage of having oppurtunities in the U.S. They could never have had in their own country. Meanwhile Americans are spoiled and don't realize there is an abundance of oppurtunity just waiting for them to take it. The rest of the world looks at the U.S. as a country where anything is possible and some will even risk death trying to get here.

 

[Francisco d'Anconia]

Because foreigners take advantage of having oppurtunities in the U.S. They could never have had in their own country. Meanwhile Americans are spoiled and don't realize there is an abundance of oppurtunity just waiting for them to take it. The rest of the world looks at the U.S. as a country where anything is possible and some will even risk death trying to get here.

And in all this we are more concerned with whether Brittney left rehab too soon or why the hell Sanjaya hasn't been dumped from American Idol...

 

[Oxide]

That's right. you keep watching TV, keep doing what you are doing.. please do!




he he he he.

 

[Last Man Standing]

Yes - it is crashing!!!! And the dollar currency is crashing worse!!! Buy gold!!!

 

[Oxide]

Oh, i forgot we had the esteemed forex trader in the house...


...who never backs up anything he says.

 

[Shiftkey]

Property rates in the entire US are never going to crash (barring something like the great depression). Property markets are local. While rates might be sinking or stagnant in one community, they're booming in others.