Tuesday, July 29, 2008

Housing Bottom, Kind Of

I thought that Brick Oven was wrong after the TV headlines, but I was mistaken.

The market has bottomed in areas without rapidly growing Hispanic populations. The following Cities had month-over-month price increases:

Dallas (rise attributed to the oil industry)

These are the cities with greater than a 2% month-over-month price decrease:

Los Angeles
San Diego
San Francisco (1.97% drop)
Washington DC
Miami (7% drop)
Las Vegas

Real estate prices in rural America are rising. As the Price Schiller Index lags by three months, Brick Oven stands by its conclusion. Just invest in land far away from illegal immigrants. Hispanic immigrants, while generally decent people, will reduce real estate prices to those in non-resort Mexico areas, which are low.

The value of land is proportional to the IQ of the population. That is why land costs more in Japan than in the US. It is also why there is no value in Zimbabwe real estate.

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