Submitted by ltokuda on May 1, 2007 – 10:48am.
I think they’re both right. There is no national housing market. Some markets are going to crash and others are going to continue to grow. So for a real estate investor, there are always opportunities … as long as you know which market to invest in.
I beg to differ. There is a national market.
Its like this in crude terms. say at some point in time, 2 cities a and b have prices Pa and Pb for 2 specific houses.
Assuming Pa is 2X Pb, at a different point in time when nothing has changed between these 2 cities they are at Ra and Rb. Ra will also be 2X Rb. That is a global or a national market.
Of course that might never happen, they may build a road by a, a school by b, an airport on top of a, and a shipyard by b. All of those is local.
Needless to say, we can have these factors count in equally in both a and b and they still have the same 2X or there can be a complete lopsided change like Michigan and say CA from 70-2005 etc etc.
There is a national market, but local factors can overwhelm it and skew it in favor of one or the other.
Now the credit bubble it was national, every 2 bit drunk bought a house, be it in Illinois or be it in CA, and every area is bubblicious. Some more bubblicious than others.
Cool.
Cow_tipping.
