Has the Real Estate Bubble Bell been Tolled?
Today, CNN had an article from one of the largest home builders Toll Brothers which did not point to good news on the real estate front. In fact this maybe the real signal that the real estate bubble has actually popped.
An interesting quote from the article worth noting:
is the first downturn in the forty years since we entered the business that was not precipitated by high interest rates, a weak economy, job losses or other macroeconomic factors
I give their point of view alot of weight considering the amount of experience they have (40 years), country wide view of markets and their apparent non "spin" which is so common with quotes coming from other real estate professionals.
Lastly, since Toll Brothers builds high-end luxury homes and is seeing this kind of downturn we may see a much broader impact in the future as studies have been made that indicate that high-end real estate is often the leading indicator or real estate price direction.
This comment appears to support what many real estate bubblers have been warning of. What do you think? Has the real estate bubble bell been tolled?
2 Comments:
that's really a bad news for those who are into real estate. if Toll Brothers who have in the real estate business for 40 years is feeling the bubble..well, the smaller ones should expect the worst.
I personally am glad to see the stupid people blindly bidding on houses and driving the values sky high have this happen. Where I live houses are easily 100-150k too high and they are now staying 6+ months on the market dropping in 30k increments. The ones that don't sell are up for rent for astronomical rents for the area. Since there are no takers, I forsee many, many forclosures and auctions. Jumping on the "bandwagon" never pays off in the long run. The days of Dot Com stock profits and quick flipping of houses are gone! Thank GOD!!!!
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