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What happened to all of the other housing bubbles outside America?

By nlscb (Thu May 08, 2008 at 01:17:40 PM EST) (all tags)

Now that America's housing market has turned down, what happened to all of the others about which I used to hear? UK, Ireland, Australia, Spain, Denmark, South Africa, among others were often mentioned to have appreciation rates that put American ones to shame. Are they still going strong? Have they stopped? Are they having problems?

If this is what America's bursting bubble is doing, what happens when the rest of them go? I doubt that we have seen the end of the financial markets' problems.

I'm sure that I could look it up if I wanted to, but it's so much more interesting hearing it from here from people from those countries.

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What happened to all of the other housing bubbles outside America? | 15 comments (15 topical, 0 hidden) | Trackback

The local bubble where I live is still strong by Greener (2.00 / 0) #1 Thu May 08, 2008 at 01:47:49 PM EST

in a small town in western Canada. It helps that this is a very desirable place to live sandwiched between a lake and a mountain with no room to spread out or build more homes. Real estate is still a third the price of equivalent places in Vancouver or Calgary and most of it seems to be fueled by Alberta's oil boom and Calgarians buying summer and investment properties. It's causing huge problems for students (we're a college town) and low income families.

My place has more than doubled in less than four years and If I wanted to I could probably sell my extra lot and pay off my mortgage. This is a large part of why the place is so desirable.

There's legitimate growth in your anCalgary's case by nlscb (1.00 / 1) #2 Thu May 08, 2008 at 02:06:57 PM EST

There is a huge oil boom and houses take time to build. I have no doubt that housing will eventually catch up. In your case, there is simply a small amount of land to build upon due to the mountains.

What concerns me more is when you have a housing bubble in DC, which is 1 hr from the sea, 3 from the mountains, and has a massive coastal plain stretching south of it to Florida. When Minneapolis has a housing bubble, with flat empty habbitable land 1000 miles in every direction, then I get really scared.

[ Parent ]

DC's bubble will burst when we have a Conservative by georgeha (4.00 / 1) #3 Thu May 08, 2008 at 02:19:31 PM EST

President who believes in small government and downsizes the government.

[ Parent ]

: Yay! by ambrosen (4.00 / 1) #5 Thu May 08, 2008 at 05:44:21 PM EST

I'm doing me some investing in DC property then.

[ Parent ]
: this is shortly after china takes over, then? by aphrael (2.00 / 0) #10 Fri May 09, 2008 at 02:31:15 AM EST

If television is a babysitter, the internet is a drunk librarian who won't shut up.
[ Parent ]

desirable place to live by clover kicker (2.00 / 0) #6 Thu May 08, 2008 at 06:25:29 PM EST

That's putting it mildly, assuming there's any work nearby.

[ Parent ]

That's the catch by Greener (2.00 / 0) #7 Thu May 08, 2008 at 06:43:26 PM EST

The main industry around here is tourism and adventure sport. Except for one smallish software company there's no IT work unless you telecommute.

The place went through a massive bust about the same time as Calgary's first oil bust in the early 80s when the mill shut down. At the time you could get a 4000 sq ft Victorian home for under 15k as the place emptied. The town restored it's main street to it's turn of the century look and reinvent itself as a tourism destination. Those big old Victorian houses now go for over 650k and anything on the waterfront is at least a million.

[ Parent ]

I'm Down East by clover kicker (2.00 / 0) #8 Thu May 08, 2008 at 07:04:58 PM EST

So I know exactly what it's like to live in a beautiful spot with crappy work prospects.

Once upon a time I had great hope in telecommuting, but it seems mostly practiced by people who work for Toronto companies but live in the remote wilds of Brampton.

[ Parent ]

Woah woah woah! by Driusan (2.00 / 0) #9 Thu May 08, 2008 at 10:43:34 PM EST

Crappy work prospects? But you could become a.. a lobster fisherman, or a.. a.. a professional beer drinker! Or even an amateur beer drinker!

The sky is the limit!
--
I needed a new sig. And now I have one.
[ Parent ]

you forgot lumberjack and potato farmer -nt- by clover kicker (2.00 / 0) #12 Fri May 09, 2008 at 09:52:47 AM EST

[ Parent ]

: Let's not get carried away here (nt) by Driusan (2.00 / 0) #13 Fri May 09, 2008 at 04:49:18 PM EST

--
I needed a new sig. And now I have one.
[ Parent ]

The thing is... by ObviousTroll (2.00 / 0) #4 Thu May 08, 2008 at 04:07:41 PM EST

I don't think the "bubble has popped" in America, either. Certainly some places are seeing dramatic shifts in housing prices, but it's not uniform. Zillow still show my house as worth 100k more than it was in 1999.

--
Has anybody seen my clue? I know I had it when I came in here.

: That doesn't mean much by lm (2.00 / 0) #15 Sat May 10, 2008 at 09:39:42 AM EST

Zillow's margin of error seems to be about 50% Back when I still owned three houses, judging by the sale prices on two of those, it was 50% under on one, 50% over on the other. It seems to me to be about right on the third.
Aside from that, 100k of appreciation tells us nothing. A 100k house appreciating at 1 to 2 percent per year will appreciate between 10k and 22k over ten years. A 500k house could appreciate 100k in 10 years at what is a relatively low rate of appreciation.
Now if you bought your house for 50k in 1999 and it appreciated 100k, that would certainly indicate either a bubble or the fact that you had some very interesting photographs of the seller.
There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]

Bubble isn't quite right. by Merekat (2.00 / 0) #11 Fri May 09, 2008 at 02:55:58 AM EST

More like someone is shaking the sandbox and crazy peaks are being more evenly distributed. Good size, good location is still in demand. Cardboard-quality mansions two hours commute away from the city with no facilities, less so.

Denmark by TurboThy (2.00 / 0) #14 Sat May 10, 2008 at 06:27:28 AM EST

Not so much a bubble bursting as slowly deflating to more realistic levels (in the capital, at least).
__
You can't fix anything, you can't change anything, so just tell them that everything is A. The Fuck OK. —Rogerborg

What happened to all of the other housing bubbles outside America? | 15 comments (15 topical, 0 hidden) | Trackback