Remember how when prices were going up, up, up, one of the reasons it was allegedly justified was “high construction costs”? See this post for a lengthy example of a local real estate professional making that argument. Well, luckily for us, it would seem that construction costs are dropping like a rock. Or, perhaps not…
Tag: fundamentals
Looking back to look forward: Snohomish Co.
I want to talk about Snohomish Co., not that there’s anything wrong with King Co. (hey, I grew up on 23rd and Prospect on Capitol Hill, so I know the area). Not everyone in Snohomish Co. drives Ford trucks, has big hair/mullet and listens to Cinderella or Quiet Riot. Yeah, cheap shot. Moving on… The…
Rents to Rise, or Home Prices to Fall?
One of the arguments often discussed with respect to the housing bubble is the fact that the ratio of prices to rents has been fairly consistent on a historical basis, but that this ratio has been blown out in the past few years as home prices have shot up. Indeed, this can be seen in…
When is the drink going to run out?
As the flying party that is the debt-fed US economy and the super-special Seattle housing market experience more and more turbulence, I feel that the following quote from Douglas Adams’ novel Life, The Universe, and Everything (third book of five in the must-read Hitchhiker’s Guide to the Galaxy trilogy) is even more pertinent than it…
Welcome to Seattle Bubble
Since I was on KING 5 News last night and KOMO 1000 radio this morning*, I thought it would be good to write up a slightly more detailed post aimed at answering the question: “What is Seattle Bubble about?” So, here’s a summary of the important points. The Bottom Line: Now is not a good…