June 2005 Economic Outlook, Special Topic - What Goes Up Might Come Down: How Long Can This Hot Hous (June 2005 Economic O)
Venue: Los Angeles
|Event Date/Time: Jun 21, 2005||End Date/Time: Jun 21, 2005|
|Registration Date: Jun 14, 2005|
The current level of hype about real estate bears a worrisome resemblance to the dot.com bubble of the late nineties. Financial companies tout no-money-down interest-only loans as a way of extending speculators' purchasing power, and developers pitch new developments to buyers the way Wall Street analysts used to pitch new IPOs. According to the National Association of Realtors, over a third of total sales in 2004 were to families buying a second home--most for 'investment' purposes.
While housing activity levels are still high from a historical perspective, there are signs that the market is starting to slow. Appreciation rates and sales rates have peaked, and some markets have seen a rapid increase in inventory levels. The recent Fed warning regarding inflation has sent mortgage rates up.
How long can this market last? Are we in for a soft landing or a crash? Who is likely to be left holding the bag when the smoke clears? These are the questions --among many others--about the California and National housing markets that we will attempt to answer at the Conference.