Will housing bubble implosion cause ripples into comic market?

[JiveTurkeyMoFo]

Overvalued markets are common, no doubt, but the "housing bubble" isn't everywhere.

 

True, but 40% of the jobs created nationwide in the last five years have been in Housing and related sectors. When those jobs start disappearing, the effects (lower consumer & business spending) will be felt nationwide. In fact, if you look at the reported job numbers, remove the almost entirely fictious assumptions of the business birth/death model, you'll see were actually coming in with negative verifiable payroll jobs every month. (July was an exception, the birth/death model actually showed negative jobs, as in took away jobs, last month).

 

No real surprise Q2 GDP growth was about a percentage point lower then analysts expected.

 

Now, to be fair, it should be mentioned that there are areas (Seattle is still strong, Tennessee and other areas of the South come to mind) that are currently experiencing their own housing boom. This is in many ways the effect of the "rolling boom", people from California, or Florida "cashing out" and purchasing somewhere else cheaper and/or with a better standard of living. However, this can only go on for so long....if you can't sell your first residence, chances are you aren't buying another one.

[SurfingAlien]

Jive Turkey Mo Fo,

 

Do you read Ben Jones' Housing Bubble blog? Your commentary tells me you might. All of the things you say are debated there and the ripple effect is something that is IMHO guaranteed to happen. There has never been a soft landing in RE downturns and this one looks to be a mother of one and will affect our economy in many different ways.

 

I brought it up on this thread, not to cause anyone heartache, but because I have learned so much about comics here and have enjoyed the education and want to give the heads up to anyone who will listen that there could be some hard times ahead for disposable income in general.

[skybolt]

How is the midwest doing?

[the blob]

But you can apparently buy a 4-6 bedroom home in Columbus Ohio for like $2K. Bump that up to about $35-65K for many parts of upstate New York, rural Illinois, rural Georgia, etc.

 

Of course, not that many people live in these places....

[the blob]

You want to talk housing bubble, check out the prices in many parts of England. I peruse RE brokers wherever I go and I was absolutely shocked! Seriously, housing in many parts of London makes Park Avenue look like a bargain. And no, it's not just the weak dollar, even at $1.50/pound (rather than $2) this stuff is really expensive.

[DawgPhan]

But you can apparently buy a 4-6 bedroom home in Columbus Ohio for like $2K. Bump that up to about $35-65K for many parts of upstate New York, rural Illinois, rural Georgia, etc.

 

Of course, not that many people live in these places....

 

 

huh?

[the blob]

he asked how the midwest was doing. columbus and rural illinois are in the midwest, no? buffalo NY might as well be in the midwest.

 

clearly no bubble in those markets. houses sell for far less than they would cost to build.

[evilsly]

You want to talk housing bubble, check out the prices in many parts of England. I peruse RE brokers wherever I go and I was absolutely shocked! Seriously, housing in many parts of London makes Park Avenue look like a bargain. And no, it's not just the weak dollar, even at $1.50/pound (rather than $2) this stuff is really expensive.

 

 

uk property prices are absolutely insane, especially when you see what you get for your money

[burntboy]

Damn - Northern NJ/NYC are tied for 15th worse.............almost all of the other "bad" spots are in Cal and Fla.

 

and my wife just retired to start her own "dream" business.............

 

keep repeating; "i will NOT go back to work", "I will NOT go back to work"........

[JiveTurkeyMoFo]

he asked how the midwest was doing. columbus and rural illinois are in the midwest, no? buffalo NY might as well be in the midwest.

 

clearly no bubble in those markets. houses sell for far less than they would cost to build.

 

Sure, and Detroit is thinking of implementing a program where they would give away City owned properties just to get them off the tax rolls. Just think, free land in the middle of a major American city!

 

All that doesn't change the fact that a serious downturn in the regional housing markets like California and Florida and Washington DC and the Northeast would impact the economy nationally. A homeowner in Jerkwater, USA*** doesn't have to be in a bubble area to lose his job if the company he works for folds during a recession.

 

Our economy has just grown WAY too dependent on Housing.

 

***Note, this reference isn't to deride those in rural areas (I've lived in rural areas myself), it just a reference to a line in the original Rambo movie...one that stuck with me for some reason.

[JiveTurkeyMoFo]

Do you read Ben Jones' Housing Bubble blog?

 

Admittingly, I don't, but I did read about him in an interview he did with MSNBC recently.

[the blob]

come come now. [embarrassing lack of self control] are in control. there can be no recession.

 

(how will they be able to blame this one on clinton?)

 

But honestly, if middle class housing in my neck of the woods would just become affordable to people in the supposed bottom end of upper middle class like me (does $160-180K of household income qualify as bottom end?), it wouldn't be such a terrible thing. $850K for a 1050 square foot 2 bedroom apartment can't be good for long-term economic stability when people can't afford to live within an hour of where they work.

[Psiknight]

KD - KD Lang? Kentucky Duck?

 

Help out a low roller here

 

Kraft Dinner/Mac 'n Cheese

 

I had to actually look that up. Apparently it's a Canadian thing.

[joe_collector]

I had to actually look that up. Apparently it's a Canadian thing.

 

I thought Mac & Cheese was the US equivalent?

[Psiknight]

I had to actually look that up. Apparently it's a Canadian thing.

 

I thought Mac & Cheese was the US equivalent?

 

Yeah, I mean the name is Canadian. I searched KD on urbandictionary.com, and it's the first entry.

 

Apparently, according to Urban Dictionary, Canadians consider it a total meal, while Americans use it as a side dish. Personally, I think it's nasty.

[joe_collector]

Up here, KD is not just a meal, but an entire food group.

[scottish]

I had to actually look that up. Apparently it's a Canadian thing.

 

I thought Mac & Cheese was the US equivalent?

 

Yeah, I mean the name is Canadian. I searched KD on urbandictionary.com, and it's the first entry.

 

Apparently, according to Urban Dictionary, Canadians consider it a total meal, while Americans use it as a side dish. Personally, I think it's nasty.

 

I can't stand Mac & Cheese either. Wife loves the stuff though.

[tth2]

You want to talk housing bubble, check out the prices in many parts of England. I peruse RE brokers wherever I go and I was absolutely shocked! Seriously, housing in many parts of London makes Park Avenue look like a bargain. And no, it's not just the weak dollar, even at $1.50/pound (rather than $2) this stuff is really expensive.

 

 

uk property prices are absolutely insane, especially when you see what you get for your money

Sorry, but if you want to see the most insane property prices in the world, you need to come to Hong Kong. Even Mayfair and Knightsbridge prices don't compare to prices in similarly high-end areas of our little island.

[rjpb]

come come now. [embarrassing lack of self control] are in control. there can be no recession.

 

(how will they be able to blame this one on clinton?)

 

But honestly, if middle class housing in my neck of the woods would just become affordable to people in the supposed bottom end of upper middle class like me (does $160-180K of household income qualify as bottom end?), it wouldn't be such a terrible thing. $850K for a 1050 square foot 2 bedroom apartment can't be good for long-term economic stability when people can't afford to live within an hour of where they work.

 

Don't you get the memos - it's ALWAYS Clinton's fault

 

I sold my house here in LA this spring - the prices had gotten out of control - I sold a 60 yr. old suburban home with no recent kitchen or bathroom upgrades on an 8K lot for $570 a square foot. My realtor has told me that I'd probably have to settle for at least 10% less if I were selling today, and it would take longer to sell. I'm sitting the market out for a couple of years, but I won't be spending the cash on comics either.

 

Too much scary stuff going in the world, politically, economically and environmentally for the high flying housing markets not to crash. I agree the bubble is definetly geographic, but I wouldn't count on continued growth in real estate prices anywhere.

[Psiknight]

come come now. [embarrassing lack of self control] are in control. there can be no recession.

 

(how will they be able to blame this one on clinton?)

 

But honestly, if middle class housing in my neck of the woods would just become affordable to people in the supposed bottom end of upper middle class like me (does $160-180K of household income qualify as bottom end?), it wouldn't be such a terrible thing. $850K for a 1050 square foot 2 bedroom apartment can't be good for long-term economic stability when people can't afford to live within an hour of where they work.

 

Don't you get the memos - it's ALWAYS Clinton's fault

 

I sold my house here in LA this spring - the prices had gotten out of control - I sold a 60 yr. old suburban home with no recent kitchen or bathroom upgrades on an 8K lot for $570 a square foot. My realtor has told me that I'd probably have to settle for at least 10% less if I were selling today, and it would take longer to sell. I'm sitting the market out for a couple of years, but I won't be spending the cash on comics either.

 

Too much scary stuff going in the world, politically, economically and environmentally for the high flying housing markets not to crash. I agree the bubble is definetly geographic, but I wouldn't count on continued growth in real estate prices anywhere.

 

No offense to anyone that lost money or may lose money in the future, but I'll probably be buying a house in 2-3 years and I can't wait for housing prices to fall...