Quote:
Originally posted by RANDY P
The reason being is that all of CA came up to the NW and started buyng condos and houses in "Phase 1" developments.
Buy it, never move in, sit on it till the builder raises the prices, sell it.
rjp
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This is certainly the case here. Buyers from the US, Europe and Asia have been buying newbuilding off of developers plans - before it is built. In fact I think virtually every new condo built these days is "pre-sold". A great many of these sit empty - while their owners live and work elsewhere. Walking through many new developments at night is like walking through a ghost town.
And prices for these are truly ridiculous. For a while the holy grail was $1,000 per square foot - but we are now seeing apartments sell at $1,300 and even $1,400 per square foot. Silly money by any standards - except perhaps Money Center standards.
And when those financial investors no longer see their investment appreciating at 15 or 20% per year they will pull the plug and get into pork bellies or Chinese equities or something else.
And then everything will collapse in a steaming heap.
Trust me. I'm a lawyer.