November 21, 2024

 San Diego real estate marketReal estate market signs that appeard from 2002 to 2005:

#1 – Speculation/Greed. "Flipping" properties become so popular that there was even a television show called "Flip This House."  It was almost impossible to pick up a newspaper or magazine without reading about the riches to be made in real estate.

#2 –  Party barometer. Almost at every San Diego party the only thing people talked about was their latest real estate investment and how much they had made in San Diego real estate.

#3 –  New risky mortgages. The Washington Post reported that Fed Chairman Alan Greenspan warned that "home prices seem to have risen to unsustainable levels" in certain local markets. An "Economist" article stated that "42% of all first-time buyers and 25% of all buyers made no down payment on their home purchase last year."

#4 – Huge Consumer debt levels. Consumer spending accounts for approximately 70% of our GDP. That's well above the 75-year average of 65.5% (covering the period 1929 to 2004) as described in a report provided by value investor, Arnold Van Den Berg of Century Management. Such spending levels are not sustainable. The bulk of that consumer debt, approximately $8 trillion, was mortgage debt. [tags]San Diego real estate bubble,San Diego housing bubble,San Diego real estate, San Diego home values[/tags] San Diego real estate agent    home price drop

7 thoughts on “4 Sure Signs of A Real Estate Market Top

  1. If You dont vote, You may just be Standing in the soup line, instead of proposing just to see people in them. They already exist. Many will need to focus on making a go of it living below their means for a while, these Liars, Killers and Economy Destroyers need to answer to the People. This is a Democracy.

    Tyson
    Florida Bail

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