Why my life in 1 bedroom NWDC apt is more meaningful th

[thirsty moore]

I didn't realize Seinfeld had a skit on that.

[HoyaSaxa03]

Originally posted by econo:
  I didn't realize Seinfeld had a skit on that.

it's the one where elaine finds out puddy is a christian-freak and jerry dates the girl with the "tractor story" ... oh, and george walks out of the room whenever cracks a joke that goes over well ...

[green door]

I think we have too many stand-up comics.

[Guiny]

Originally posted by HoyaSaxa03:
 it's the one where elaine finds out puddy is a christian-freak and jerry dates the girl with the "tractor story" ... oh, and george walks out of the room whenever cracks a joke that goes over well ... [/QB]

It's funny when Elaine and the preacher do the devil horn signs on their head when Puddy is told that he's going to hell for having pre marital sex.

[ggw]

Apparently you were in the ER trying to get your thin skin treated.
 
 

Originally posted by sonickteam2:
   

Originally posted by ggwâ?¢:
  My experience doesn't matter, it's just that you are a moron.  

i stopped reading your post after that. I think i have posted long enough on this board to not be called a moron like this.  
 
   until you have the respect to listen to someone else's opinion, i have nothing further to add, nor will i waste my time justifying my point to someone who will only try to prove me wrong or stupid for the point of doing so.
 
   thanks a lot. [/b]

[Bags]

Originally posted by ggwâ?¢:
  Dark Horizons for the Real Estate Market

My question on the bubble bursting in DC is that, for quite some time, DC was undervalued via real estate compared to comparable cities (though Chicago was as well, and I believe still is compared to DC's real estate growth).  I certainly believe there will be a slowdown or stagnation for a while, but I'm not so sure there will be a burst here in DC with a very steady employment scene and prices that now are comparable to L.A., still far under N.Y.C., etc.  [PS, no, I'm not saying DC is comparable to NYC as a city...]

[HoyaSaxa03]

as i've said before, if there is a major terrorist attack (which is quite possible, if not probable) in this city, their could be panic with real estate prices ... i'm not sure why people aren't taking this into account when they talk about the issue ...

[Bags]

Originally posted by HoyaSaxa03:
  as i've said before, if there is a major terrorist attack (which is quite possible, if not probable) in this city, their could be panic with real estate prices ... i'm not sure why people aren't taking this into account when they talk about the issue ...

But there wasn't last time...are you thinking of something huge, focused on DC?

Originally posted by Bags:
   

Originally posted by HoyaSaxa03:
   <img src="http://www.freakingnews.com/entries/10000/10013VbDA_w.jpg" alt=" - " />

But there wasn't last time...are you thinking of something huge, focused on DC? [/b]

Maybe he's a member of the team planning the next one?

[ggw]

Originally posted by Bags:
 My question on the bubble bursting in DC is that, for quite some time, DC was undervalued via real estate compared to comparable cities (though Chicago was as well, and I believe still is compared to DC's real estate growth).  I certainly believe there will be a slowdown or stagnation for a while, but I'm not so sure there will be a burst here in DC with a very steady employment scene and prices that now are comparable to L.A., still far under N.Y.C., etc.  [PS, no, I'm not saying DC is comparable to NYC as a city...]

The problem with that argument is that it assumes that prices should fundamentally be equal across cities.  That's not the case.
 
 The dangers to the real estate market are more related to the fact that prices seem detached from the fundamentals.  That is, unless rents rise sharply or if the outsized capital appreciation continues, it is unlikely that one would make one's money back on a home purchased today.
 
 Moreover, people are leveraged out the wazoo.  The Wall Street Journal had an article a few weeks back noting that many people, in the wake of the dot-com bubble bursting, have shifted their savings from the stock market to real estate.  Not coincidentally, it's many of the same people who lost money in stocks who are now making speculative real estate investments.  Furthermore, people have been taking loads of equity out of their homes (in 2004, U.S. households borrowed $820bn in the mortgage market but only bought $540bn in homes).  About a third of new mortgages (including refis) are short-term or interest-only packages.
 
 Hence, the concern is that as rates rise and the economy cools off, people will be squeezed -- they don't have any savings to protect them -- and they will be forced to sell their homes to pay off their debts; and they will be selling into a poor market, since higher rates will dampen demand, and they will have to lower the price to attract buyers, yadda yadda yadda...setting off a deflationary debt liquidation cycle (in a worst case scenario) or simply meaning that prices will plateau (best case scenario).  
 
 There is little reason to believe a scenario in which real estate will continue to appreciate, since there is little room left for leverage and since the pool of renters continues to get smaller.

[HoyaSaxa03]

Originally posted by Bags:
  But there wasn't last time...are you thinking of something huge, focused on DC?

i shudder to think of government web crawlers logging my IP address as we speak .... i'm just saying that if something big happens, it could depress the real estate market ... who knows if it will or not ...

[Bags]

I'm not arguing, ggw, I'm asking.  I am *far* from an economics theory literate person, and I do not enjoy following any of this.  
 
 My situation is that I make a relative good income, and am having real problems (I've had employment fluctuations and changes that kept me from buying 5, 4, 3 years ago -- as everyone says now, I should have done it anyway, but it wasn't necessarily insane that I didn't).  
 
 I ask every day, how can this go on.  I'm not looking for a place to build my wealth from, to use for equity down the line, etc (I would never consider an interest only loan, but I know how many folks are doing that...).  I need a place to live that will get me out of my current tax situation.  And hopefully it will appreciate.
 
 Blech, I keep swearing I won't keep talking (or asking) about this, but it's hard to avoid.
 
 I do, though, still believe DC was undervalued for a good decade or so, and see some of this as a normal course correction.

Originally posted by HoyaSaxa03:
   

Originally posted by Bags:
  But there wasn't last time...are you thinking of something huge, focused on DC?

i shudder to think of government web crawlers logging my IP address as we speak .... i'm just saying that if something big happens, it could depress the real estate market ... who knows if it will or not ... [/b]

As Bagster said, it has already happenned and prices went way, way up.

[sonickteam2]

Originally posted by Bags:
 
 I do, though, still believe DC was undervalued for a good decade or so, and see some of this as a normal course correction.

you also cant think of DC as a whole. neighborhoods in cities are all different. and even if/when a "bubble bursts" certain trendy neighborhoods will remain highly competetive with prices remaining out of control.
 
   buying a place in Baltimore seems safe to me, considering that "bubble" will probably burst first in DC, plus when all those people cant afford thier houses in DC....where do you think they'll be coming.....

[Charlie Nakatestes, Japanese Golfer]

Northern Virginia
 
 

Originally posted by sonickteam2:
 

Originally posted by Bags:
 [qb]
  plus when all those people cant afford thier houses in DC....where do you think they'll be coming..... [/b]