10 trillion in bonds w/ a negative interest rate, throw in another 10 trillion yielding less than one percent and IMHO its a “bubble” situation that one should be aware of and prepared for
the knock on effects are a dramatic rise in asset prices (like commercial real estate) because some types of collateral (like commercial real estate) is no longer constrained by any historic measure from my look at the data in various markets (around the world!)
[quote=loopnet.com]
Current San Diego market trends data indicates an increase of +8.6% in the median asking price per unit for Multifamily properties
so, in order to pay for higher priced rentals (i.e. cause and effect)
[quote=cbs8.com] San Diego rent is through the roof
SAN DIEGO (CBS 8) – San Diego may be a beautiful place to live, but it has become more and more expensive for renters. San Diego rent has increased three-percent in the past year.
An increase in demand has rent skyrocketing. More and more people are moving into San Diego and are are willing to pay top dollar to live in America’s finest city.
Jamie Pullman, a broker with Downtown Condo Guys, sees brand new properties come online before many in the public do. He said he’s not stunned that rent continues to climb in San Diego.
A study by Apartment List shows San Diego placed fourth for both most expensive rents and highest rent growth in California for the month of June. Rent grew three-percent in San Diego, but it’s not the only pace in the state of California to see rent increases.
Long Beach has also seen rent go up. However, in places like Santa Ana, rent has gone down.
In San Diego it costs a median price of $1,510 for a one-bedroom and $2,020 for a two-bedroom. In San Francisco, renters are paying nearly $5,000 a month for a two-bedroom.
In Pacific Beach, on average a studio apartment will go for about $1,600.
The highest vacancy rates are in East County and South County.
Despite the rent hike, there are new inventory and places coming online everyday – which forces some rental properties to become more competitive and bringing down rates.
According to the San Diego County Apartment Association, the vacancy rate in residential units across the county is only four-and-half percent.
so given all the horse $hit, my interpretation of the data is,… there exits another bubble (of sorts which is not yet recognized by 99.99% of the population) so best not to be asleep at the wheel![/quote]
I don’t get the point of your paranoia. If things were to collapse, its doesn’t happen all the sudden overnight. If you are really that paranoid about things cratering then leave your money in a 1%CD+, and wake me up 8 years from now to let me know how that worked out for you. My 16+ years in a well diversified portfolio seems to worked alright…Afterall, I doubt I would have been able to live free and clear on a primary and almost all rentals had I left everything in a 1%CD. Just saying…
Ubber bears are just a funny a perma bulls. The later loses money by staying in the markets too long or entering too high. The former loses money by convincing oneself over paranoia and the sky is falling mentality to never to enter, just like housing starting in 2009.
