Monday, May 30, 2005

I'm a bubbling hot, hot, hot!!!

I'm no real estate expert, but if interest only loans and adjustable rate mortgages account for 63% of all new mortgages, does that not bode ill for many homeowners and the real estate market in general as interest rates continue to rise through 2005?

The Washington Post reports that foreclosure rates are up in 47 states. Working-class neighborhoods are really being decimated by foreclosures.

But Uncle Alan says there's only a little "froth" in the real estate market.

Hmm. I'm no expert, but I just had a friend purchase a 475 square foot studio apartment in Brooklyn for $295,000 dollars. A Manhattan studio apartment will cost you somewhere in the $400,000-$450,000 dollar range. When I was a kid in the 70's, you could buy a mansion for that kind of money. Same with the 80's. Now it gets you a studio apartment.

Seems a little frothy to me. But again, I'm no expert, and Uncle Alan is.

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