This article appeared on the front page of the Puget Sound Business Journal early this month. While typically not read by the general public, “Biz Journals” are widely circulated throughout the business community. Local businesses use the publication to keep tabs on their customers and competitors and to stay abreast of local business news. I’ve…
Urban Growth Boundary Malarkey
A common argument about housing prices that I’ve personally noticed popping up frequently in the last few weeks is that they are as high as they are here in King County thanks in very large part to the Growth Management Act (GMA). Specifically, the argument claims that the Urban Growth Boundary (UGB) has so limited…
Bubble Link Roundup
It’s time for another link roundup: a list of links that are worth posting, but not each as their own post. Some of these are Seattle-specific, some aren’t. Keith at Housing Panic provides a concise history of the housing bubble. Calculated Risk expects a recession in ’07 and explains what would change his mind. The…
Pop Quiz Time: Fundamentals or Speculation?
Here’s a pop quiz for you. Take a look at the following two tables and try to determine which one more closely resembles a market based on fundamentals, and which one represents a market based on speculation. Median Household Income vs. Average Rent: 2000-2005 Year Med. Income % Chg Avg. Rent % Chg 2000 $53,200…
Fleckenstein: Seattle "Just a Little Less Dark"
Wow, Aubrey Cohen over at the P-I is really slipping lately. First he prints the prediction that Seattle will see “slight year-over-year price declines this spring or summer,” and now he has penned an entire article about Bill Fleckenstein’s “not-so-rosy” outlook for local real estate. Like many economists and real estate professionals, hedge fund manager…