{"id":186,"date":"2006-04-12T08:46:00","date_gmt":"2006-04-12T15:46:00","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=186"},"modified":"2006-04-12T08:46:00","modified_gmt":"2006-04-12T15:46:00","slug":"newsflash-rapid-appreciation-not-all-good","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2006\/04\/12\/newsflash-rapid-appreciation-not-all-good\/","title":{"rendered":"Newsflash: Rapid Appreciation Not All Good"},"content":{"rendered":"

Peter Callaghan must have missed the memo. A local reporter actually covering the dark side<\/i> of increasing home prices <\/a>. Holy cow, I think I might faint.<\/p>\n

Homeowners seem to enjoy the breathless stories about superheated real estate markets. Pierce County, for example, saw an 18 percent increase in the median price in the last year. In King County it was 12.3 percent; in Thurston, 24.9 percent.<\/p>\n

It’s nearly always covered as good news. Apparently we all feel that much richer, given that many people’s personal wealth is tied up in their homes. We tell stories about how much houses in our neighborhoods are going for with a “can-you-believe-it?” shake of the head. No matter when you bought \u2013 last year or last century \u2013 it’s worth more now than it was then.<\/p>\n

The news isn’t so good for the folks who haven’t been able to buy a house because they’re poor or young or coming here from places where prices aren’t so nutty. They certainly have a different reaction to the news.<\/p>\n

A rising tide raises all boats, which is cool as long as you have a boat but not so cool if you’re standing on the beach.
…
No one wants the price of housing to stagnate or decline, not even those who have hopes of becoming owners. But bad stuff results from repeated double-digit increases. At the risk of bringing everyone down, here’s why:<\/p>\n