Re: Ask tommy2 about Real Estate
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Not all real estate markets in the US are heading down as some people belive. (Bubble) Austin, TX went up last year as well as a few other places like some places in Tennessee and North Carolina.
If you were to invest out of state (I'm in CA), which state would you 'bet' on and what city?
TIA
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The bubble is less about pricing and more about liquidity in the market. My point is that the bubble hasn't burst yet--as bad as people think (in some areas) it has been, it is about to get worse. All sorts of lenders are going to change their underwriting, Wall Street is going to overreact and many people are going to be unable to buy homes. Since the demand is going to drop the prices are going to follow. What's worse is that fewer people than ever have equity in their homes so there will be a strong chilling effect on the market--guys who would normally sell won't because they will have to write a check at closing--so they stay put. This combo could easily cause a hard crash in 6 months or so.
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