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Nesgroup address: misc.invest.real-estate - Date & Time for the message: Tue, 01 Mar 2005 07:19:51 +0000 /

Author of the message: Stormlx

Title of the message:
WP/Kinsley: Bye-Bye, Housing Boom

Text of the message:
Bye-Bye, Housing Boom
By Michael Kinsley
Washington Post
Sunday, February 27, 2005; Page B07
Pop!
That is the sound of the real estate bubble bursting. And it's a good thing.
It is obvious to me that today's real estate prices are a speculative bubble
that is bound to burst. Of course, this has been obvious to me for about
three decades and wrong almost all of that time. Nevertheless. One piece of
evidence is the Dinner Party Index. The boom is over when more people are
bored by real estate anecdotes ("My next-door neighbor got three times her
asking price before she even put it on the market, from a professional mind
reader who divined that she was thinking about selling. . . .") than have
new ones.
Another reason the value of your house is about to plunge is that the Los
Angeles Times, the New York Times and The Washington Post all say that it
isn't. A recent L.A. Times article reported that the median price of a local



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