May 29, 2006

Great Video: The California Economy — Housing Boom or Bubble?

Economics Roundtable: The California Economy — Housing Boom or Bubble? – Google Video
Christopher Thornburg, senior economist at UCLA’s Anderson School of Management, offers his perspective on whether the recent cooling trend … all ยป in residential real estate indicates an imminent bubble burst or just a lull in California’s otherwise booming housing market in this edition of the Economics Roundtable at the University of California, San Diego. Series: “Economics Roundtable” [Public Affairs]

This is well worth the watch. Chris is pretty funny – including the only joke you’ve heard that has both Rafael Palmeiro and Alan Greenspan!

Click here to post a comment -- Posted by: burbed @ 2:35 pm

No Responses to “Great Video: The California Economy — Housing Boom or Bubble?”

  1. Fred Says:

    The affordability issue acts as a natural regulator on the real estate market. When folks can’t afford to buy a more expensive house, they just won’t buy one. Period. But a dropoff in new purchases doesn’t necessarily translate to a popping of a bubble.

    Will most folks just decide to sell their homes and move into apartments? I know one guy who did that three years ago, assuming that he’d be able to buy a nice house for cash once the real estate bubble burst. He’s still renting.

    It will always be extremely easy for anyone to buy into a stock-market bubble. If a high-flying stock is too expensive, you can just buy fewer shares in the same company, or wait for it to split its stock. The same cannot be said for real estate: one product, one price, one buyer. There is no such thing as a stock split to make property easier to buy.

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