Is this happening in your area?

From todays local online newspaper:
*In Lee County, the median price of a single-family home sold by a Realtor hit a record $235,200, up 37 percent in a year. The number of homes sold increased 19 percent to 890, the Florida Association of Realtors reported Wednesday. The median is the price at which half the sales are higher and half are lower.*
My brother and SIL just completed the refi of their 4 y.o. home, it was contracted at $130k and now it is appraised at $220k. Bear in mind they live in a *tract home*, there are 100's of them sitting around. So what is causing the value of these homes to spiral upward? This is going on with raw land too, prices going through the moon.
Is this stuff going on in your area, if so, what do you think is causing it? How long will this *bubble* last? What will be the initial signals that the air is being let out of the bubble? In 5 years will there be massive foreclosures as overinflated home values collapse under the strain of inflation and rising interest rates along with corporate downsizing and mergers? If this occurs, and with regard to the fact that most homes are slapped together like cheap Walmart knockdown furniture, what will happen to all of these disposible homes in a few years, after the are foreclosed and no longer worth the money they are appraised at? Will suburbia turn into a vast wasteland, an extension of the urban plight, wrought with crime, downtrodden citizens and rental merchants?
"If everybody agrees that a particular thing is worth 10 bux then its worth 10 bux, but if everyone suddenly agrees that that particular thing is junk....." --gs, 2005
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So long as the royalty project I'm working on gets finished and sold before the bubble bursts I'll be happy...

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I heard or read somewhere that GM has a market cap of $16b but is $300b in debt. Go figure.

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R4??
Its almost bun time here.

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You may have, but I do neither recall asking for it nor receiving it. In any case I am quite content with my access to R2000.

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sleeves... t It was a little cloudy but th temp was in the mid 60's.
What a difference a day makes.
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In alt.architecture , Don wrote :

Don, its the same here kitty corner across the continent. . .
from: http://www.vreb.org/monthly_stats.html
The average price of single family homes in Greater Victoria hit a new record high of $433,939 in February."While prices have been rising its important to note that the average price for single family homes for the last six months at $408,821 was well below the monthly average for February and the median price last month was even lower at $385,000. Equally important is that nearly 40% of single family home sales last month were for less than $350,000."
Whats 'letting it happen' here is a more business/investment-friendly government (provincially) and obviously lower interest rates. Plus this is the nicest damn place in Canada to live, and we're getting a lot of 'Mericans too, they want low crime, quainter place to live or be a second home. Lots of celebs that want to be out of the spotlight too, even Pamela Anderson, Michael J Fox, and David Foster aren't fussed over when they come home.. It doesn't have Florida's or Californica's heat but we also don't get hurricanes and floods...
Ron PS that high tea price included (I believe) all you can eat scones and pastries :-)
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And its less than five years from the 80th birthday of the Great Crash.
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Hi everyone..
I had to respond to this because here in Bermuda real estate is in a similar situation. Home prices have reached at least the 1 milliion mark for a decent minor sized 2 bedroom house and a small plot of land. It is not uncommon for homes to be even more expensive. Right now in the local papers there is much talk about sustainable development and how we can preserve what we can. Yet still the Real Estate developments still go on. We have a government corporation that takes care of our main city, and they're in the process of building a new hotel with a few other people. Also, in our local paper there's been talks of modular steel frame houses for those seeking affordable housing ( a very hot topic in Bermuda as lots of people can't even afford rent, with rents also sky high.. there are executive houses going for as much as $20,000 a month, but rents typically start around 1800 to 2500 for a one bedroom apartment.).
I'm just wondering if I should take a wait and see approach to the real estate market. Even though rates are very low down here(we're pegged to the dollar. We're close to the USA and mostly influenced by what happens there) it just makes one wonder if it's ok to buy a home now.
The only other concern I have is I'm still thinking of becoming an architect, but after I graduate would the bubble still be there?
Just needed to put forth those questions..
George

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