Out at the peak

Monday, January 23, 2006

Utah has been subjected to the bubble too

I feel bad for my friend who moved to Utah from California partly in hope that he could buy a nice house much cheaper. While a 2700sqft house might only cost $240K, this particular one was $180K last year.

There is a ton of speculation as all new constructions have waiting listings. The foreclosure business is tough because now upto 25 guys will bid on a single property. With plans of Intel creating some jobs there, speculators are banking they can sell to new employees with inflated prices. All of this feels like California in 2004.

However since the coast lines were an early indicator of a rising bubble, I believe they will also be an early indicator of the bust. When you have the major of NYC calling for a miracle, you know something is going down. I urge my friend to have patience and ride through the lagged downcycle. It can take a car 6 seconds to go 0 to 60MPH. It takes a fraction of a second to crash, and the aftermath feels like forever.


Post a Comment

<< Home