Category: Real Estate


“The problem with the real estate market remains excess inventory. Based on Shilling’s research, there are 2 million to 2.5 million excess homes in the country — a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.
With housing slumping again, Shilling says recession is coming to a town near you in 2012.”

Source>>>>

WHO IS GARY SHILLING?

Gary Shilling on How to Invest in the Age of Deleveraging and Deflation, Part I

Gary Shilling on How to Invest in the Age of Deleveraging and Deflation, Part II

Robert Shiller, the economist who co- founded the S&P/Case-Shiller index of U.S. home prices, said a further decline in property values of 10 percent to 25 percent in the next five years “wouldn’t surprise me at all.”

View full article »

China’s Ghost Cities and Malls

An estimated 64 million unsold units in China making the USA’s real estate bubble look minuscule in comparison.

“According to Financial Times, the country’s banks have been ordered to assess their viability if real estate fell 50%. Does this portend some kind of pricking of the much-hyped real estate bubble?”
Read more>>>>

“Kangbashi, a city in China’s Inner Mongolia originally designed to accommodate around 1 million people that currently has about 30,000 residents. The desert city is part of the Chinese government’s plan to add 36 million units of affordable or social housing in the next five years. Critics warn that “ghost cities” like Kangbashi are adding to the nation’s real estate bubble.” (Source: Bloomberg)

Is bubble about to burst on China’s over-hyped financial sector? For more ‘Real Deal With Chris Cuomo,’ at ABC please visit>>>>


Photo Source>>>>

The Cheap Property Boom at the Bottom

The Results of Flooding the World With Dollars:

George Soros prescribed more debt for the U.S., urging against calls to shrink the budget.

“There is very a strong push to tighten the budget as a way to reduce government spending… In my opinion, the country could actually absorb some more debt in order to get the economy going,” he said.

“If you have a growing economy, you can tolerate a higher level of debt.”

Shiller Says U.S. Home Prices Falling Below 2009 Levels


Picture Source>>>

Do the math: “10 percent drop in house prices shaves $105 billion from consumption and 1 percentage point from GDP growth”

Read More>>>

The good news: “For the first time since the downturn, some of the nation’s largest apartment-building landlords are reporting that rent declines have stopped and some are even boasting modest increases.”

Read More>>>