The SWFL RE Mania
Looks a lot like, South Seas trading co, Mississippi trading co, the Tulip Manias Snowman referenced, Even the Salem Witch Hunts
I read that Sir Isaac Newton lost his entire fortune in the Mississippi trading company, he cashed out 7,000, near the top, reinvested in the down cycle. So if you are on the losing end right now, you are in great company. he survived and so will you.
Most of these mania's there is no rebound, SWFL RE will have a rebound as it is tangible.
In Relation to the bottom dropping out the mortgage market is now toast. This will slow the recovery for sure
Unless, you have verifiable income or, have really good credit. You will not be getting a mortgage for a bit
Problem with proving your income, take median income and see if it debt ratios a median value house
While I understand that you can buy much cheaper (N Cape) it's a sign of an unbalanced market
Numbers here can make you crazy
You have that number above, showing the income and assets values are apart
But then the cost to build versus market, shows heavily towards undervalued
Until we live off intellect instead of emotion we will keep doing this. We as a people are leaning towards emotion than intellect as we evolve, for some reason
Now that the easy money is gone in Real Estate, all the Wanna Be's are now selling MLM's. Some people just have to have the easy money. Or at least the illusion of it!
It's funny, when it was the worst time to buy. They all stood in line to buy. Now it makes sense. They are too afraid. I wonder why Brother Buffet is so wealthy. Funny thing is. He displays none of the trappings of wealth. Unlike the people mentioned above. they spend 80 percent of their income to appear to make more money in the hope of attracting a few more greater fools. Fake it till you make it.
I am on the way to look at 78 Property Portfolio, buying directly from a bank, via trustee; Positive Leverage abounds in this area. The MLS is showing 10 months of inventory. That's close to normal. The locals think they have it rough though! Let them walk in our shoes!
Everyone have a great day
We are at or near Peak Negative mood
A few things to watch
Trend the hair bands in the 80's versus the change in social mood; Heavy Metal is quite the rage again
Look for the narrow ties in fashion; it's a sign of upward social mood trends
Also movie wise
When all the horror movies subside and are replaced by something more positive. It's a sign as well
One thing I noticed
Spiderman 3, very dark movie with a glimmer of hope at the end, Transformers, By far was a positive move, where at the end; the transformers were stuck on earth but now were willing to stick it out as per a newfound sense of honor
The Jason Bourne Movie will show the underdog thrashing the current system
We are at peak negative mood I think. This will subside after the elections when we get a newfound sense of purpose
Might be time to go on the boat until then
Unless a random event is on the horizon
Look at what the bridge collapse will do for any company who inspects or fortifies infrastructure
All random events tend to have an economic impact felt by someone
_________________
Jeff Tumbarello
H. G. Wells - "Human history becomes more and more a race between education and catastrophe."
