It's just my opinion, but both markets are moving in the direction you should move . The bag seems to go down and gold up. And if that's what you want to do, who am I to be contrary ?
But for today , let's focus on the real estate market in the world's largest economy . Where is the housing market headed?
" The Miami area is exploding ," says a friend who I visited yesterday.
"I live in Key Biscayne and the price of homes has risen 20 % over the last year in my neighborhood. It's like before the crisis. "
" Everyone speaks Spanish , so I thought the new tenants would come from Colombia and Mexico . But it is quite the opposite. Those most buy are the Russians , followed by the French. I guess the Russians have much money. As for the French, Miami sure is cheap compared to Paris. "
" The third largest group of buyers are Brazilians. It seems they also have a lot of money and as everybody knows here , Miami is the best place in America to live if you are Latin American . "
"Argentines are fourth. They come to Miami because they believe that Argentina 's economy is heading for a new crisis. They may be right about this. "
The price of real estate has returned to the front . Cement and brick seems to have traced the flight across the country.
In Miami , the market is led by foreigners. In Long Island ( New York ), large buyers come from Wall Street. As reported by the New York Times :
More ... no sure sign that the waste that characterized the pre-crisis stage has returned to the Hamptons that many blue signs "Constructions Farrell " multiply in the landscape, along with multimillion dollar homes advertised. It is a process that they call " Farrellización " , not just joy .
" We are busier than ever," said Joe Farrell, President of Farrell stuctures ...
With a customer base consisting mainly of bankers on Wall Street , Mr. Farrell has more than 20 new homes under construction or ready to be built. This makes it the largest builder in the area. And plan to do more , many of these luxury homes even before the buyer is located.
What do you think about this Robert Shiller housing boom ?
" The real estate market is a market with bullish and bearish cycles cycles " told CNBC, " and now is the time to buy."
But " none of this is real, the market has become very speculative."
California has risen and fallen like a roller coaster for decades, but not going towards anything. That is what we have become markets , driven by irrational exuberance .
" For the long term buyer , the fact that prices go up means nothing because even arises sell."
The newspaper The Wall Street Journal , meanwhile, has focused the same story with a negative angle .
"The return of McMansion " he reported, " is conditioned by the rules of which are tightening credit to those who purchase their primary residence ."
The latter do not have much money or a solid credit history . The builders prefer to build for a client with older and richer. Why? Because that 's where the real money .
Downtown Baltimore , meanwhile, seems to resist the latest trends in the U.S. housing market. In real terms , the price of housing has fallen in the last 80 years. But even ' Charm City ' seems to have gained the real estate train. Recently, we found some bargains and some surprisingly robust buyers.
When my wife and I went back there after 18 years in Europe, we seek a small apartment in the heart of the city. We buy and renew . Then we realized that we needed a new bigger house. Although we had no children, there was always someone to visit.
And most importantly , we did not like living in an apartment, at least not in Baltimore. Our building had a doorman, a meeting of neighbors, etc. . We could not get along with everyone !
So we decided to sell the apartment . We hope thereby suffer losses after toil away so much money to renew it. But surprisingly a buyer appeared almost immediately , willing to pay a good price for our home.
Even in Baltimore , the housing market was booming. I imagine it .
regards,
Bill Bonner.
Bill Bonner is the founder and president of Agora Inc. , based in Baltimore , USA . He is the author of the books " Financial Reckoning Day" and " Empire of Debt" that were listed on the New York Times bestseller .
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