The first Real Estate Bubble has just BURST!
 

It's called New Orleans.

Houses drop 100% in value.

:eek:

what implications will this have on other markets?

More people homeless/ruined homes, means more housing demand.

but will they qualify for new mortgages when they already owe so much on their ruined homes?

US Gov flood insurance will cover the houses. N.O. median home price in 04 was $140K when US median was $187K. Not part of the bubble. What the flood will do is increase construction costs 1.5 to 2 times over the next year. Danger there is run away inflation ripple through the US economy.

Don't know which way it will go. A decrease in GDP might bring on a recession, or the rebuilding process will just make commodity prices go crazy for a while. It's either recession/deflation, inflation, or neither.
signed,
Captain Obvious

At first glance the Texas market would take a spike but the percentage of qualified buyers is well, basically zero so it will be interesting where 100,000+ people with limited buying power or prospects will end up.

I saw lower income apartments absolutley *****-up a town a few years ago. It only took about 300 families to do it.

:confused:

Huh?

The interest rates dropped right after the storm. The houses in Baton Rouge suburbs with interstate acces or within a decent commuting distance to NO are selling before people put a sign in the yard.

I've never lived in NO, but I've stayed in one of the old houses that is probably under water. I think those of you in the northeast and cali would be amazed at what you can buy in NO for reasonable money. Like a 100+year old house with 4 or 5 bedrooms. Some really cool old houses have suffered serious damage, but New Orleans will rebuild. No one has mentioned my greatest fear: how many great blues musicians have we lost.

Property values in Baton Rouge went up the last few days....

JoeA

this will make for some great blues...didn't Aaron Nevile (sp) have a song about the great flood back 80 years ago?

Well, if that is what it takes to burst a housing bubble, I hope things continue to escalate!

The West side of Bloomington?

Re: The first Real Estate Bubble has just BURST!
 

And what did the value of the land that the house sits on drop to????

. . . 8 feet below sea level. (but at least it's ocean-front)

The song is called Louisiana 1927. Aaron Neville sings it but I think Randy Newman did the original.