Monday, January 08, 2007

Speculators Helped Fuel Florida's Housing Boom

Wall Street Journal wrote another article about how speculators drove up the housing boom. If you are a subscriber, you can read that here.

Florida Housing Bust House bought for $621k in Oct 2005 was sold for $250k in Oct 2006.

House bought in September 2004 for $435k was sold for $275k in October 2006.

$690k investment in July 2005 fetched $400k in October 2006.

One of the investors said ""This market downturn came out of nowhere, like a snowstorm...It surprised everybody, especially the people making mortgage payments."

I keep writing about real estate bubble in India. There are so many real estate speculators in all metro cities in India. All these guys think that flipping land to IT companies is a sure-fire way to get ultra rich. Many people think that there is no bubble in India, nothing will happen to real estate market in India and so on. Like the Florida investor said it would come like a snowstorm.

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