Hmmmm.... Reality?
This article presents a very interesting opinion. Here is another opinion that might interest the people wearing rose colored glasses. There are somewhere around 30,000 people in the entire country with a net worth in excess of $10m. These are 2004 numbers but you should check it for yourself. Where are this writers' imaginary buyers going to come from, another planet? How many people will hang around the $5m beachfront when the payment is 50k a month? How many have the staying power? Not many. The scariest part of this is how many beachfront houses there are around the entire coast of the United States? A hell of alot more than even 10 times this number. I keep hearing that 80 percent of the buyers of the homes over 1 million are cash buyers so these 30k must be the people we are talkng about, unless buyers are putting their entire portfolios into 1 beach house :funn: I wonder if the reason these sales might show up as cash is the magical "home equity line" on the primary residence, interest only ARM no doubt. I'm sure no one here knows anyone that has done that. :roll: There are only a small percentage of people who can REALLY afford the prices now, even double the 30k stat and say there are 60,000 people who are capable and it still looks mighty ugly to me. I own a house there (yes, it's off the beach) and love the run up, but the market is out of hand. Credit crunch is comin to town. This is the first time I have been a bear on the market since the early 90's, but these are the reasons houses are sitting on the market. I will have my checkbook out come fall or winter this year. 0-2% fed rate is not a free market, this is what happens when mortgage money is thrown at people. For our next excercise, lets see how many people have a net worth of $1m without their primary residence and crunch that a while........
This article presents a very interesting opinion. Here is another opinion that might interest the people wearing rose colored glasses. There are somewhere around 30,000 people in the entire country with a net worth in excess of $10m. These are 2004 numbers but you should check it for yourself. Where are this writers' imaginary buyers going to come from, another planet? How many people will hang around the $5m beachfront when the payment is 50k a month? How many have the staying power? Not many. The scariest part of this is how many beachfront houses there are around the entire coast of the United States? A hell of alot more than even 10 times this number. I keep hearing that 80 percent of the buyers of the homes over 1 million are cash buyers so these 30k must be the people we are talkng about, unless buyers are putting their entire portfolios into 1 beach house :funn: I wonder if the reason these sales might show up as cash is the magical "home equity line" on the primary residence, interest only ARM no doubt. I'm sure no one here knows anyone that has done that. :roll: There are only a small percentage of people who can REALLY afford the prices now, even double the 30k stat and say there are 60,000 people who are capable and it still looks mighty ugly to me. I own a house there (yes, it's off the beach) and love the run up, but the market is out of hand. Credit crunch is comin to town. This is the first time I have been a bear on the market since the early 90's, but these are the reasons houses are sitting on the market. I will have my checkbook out come fall or winter this year. 0-2% fed rate is not a free market, this is what happens when mortgage money is thrown at people. For our next excercise, lets see how many people have a net worth of $1m without their primary residence and crunch that a while........