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Nesgroup address: misc.consumers.house - Date & Time for the message: Thu, 5 May 2005 20:45:40 +0000 (UTC) /

Author of the message: spok@cs.cmu.edu (John Ockerbloom)

Title of the message:
Re: Housing bubble?

Text of the message:
In article <eack719m30p5o3d1unssdpt40t1df5k3lc@4ax.com>,
Steve  <kh@mf.inv> wrote:

>Steve <kh@mf.inv> wrote:
>>In "The Anatomy of a Housing Bubble" Grace Wong, a professor
>>of real estate at Wharton, offers ways to spot future real estate
>>bubbles in time to introduce corrective measures before the damage
>>takes its toll. Wong's research explores the Hong Kong housing market,
>>which saw a real increase in prices of 50% from 1995 to 1997, followed
>>by a real decrease of 57% from 1997 to 2002.
>
>Unless I'm missing something, this means you lost about 35% even if
>you bought before the runup.  Yikes.

Though it's a hard example to generalize from, I would think. In 1997
you had the much-anticipated handover of Hong Kong to China, which
I'd have to imagine caused all sorts of gyrations in the real estate
market there.  The Asian currency crisis also occurred in 1997,



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