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What Goes Up....The International Real Estate Problem

By
Real Estate Broker/Owner with Don Sabinske, Sabinske & Associates Inc. 539MN

The International Monetary Fund (IMF) has been monitoring international home prices and we may have the ingredients for an international problem like the United States Real Estate market did in 2008 and 2009.

 

To ease your mind, the US numbers are looking good compared to the numbers of Hong Kong, New Zealand and China.

Problem: home values in the above sectors are experiencing increasing value far outpacing the median income.

We saw this with the US and know the outcome.  Although speculation, I am a firm believer of what goes up must come down, and everything is cyclical.

The Rent vs Owning a home in Canada model shows it is around twice as expensive to own versus rent.  This is a problem.

 

Again, the United States Real Estate markets are looking good with slight to moderate appreciation and buying a home in the US today is a better move than most markets in my opinion.

Posted by

Moving in Excellence!

Don Sabinske, Broker, GRI

www.donsabinske.com

Sabinske & Associates Inc.

763-350-7960

Specializing in Sherburne, Wright, Anoka and Hennepin Counties...We can help you move!

 

Comments (10)

Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

I read an article that was quite similar in its assessment in the Minneapolis paper's business section.  We aren't out of the woods yet!

Jun 24, 2014 11:44 PM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

People may not think that this affects them, but as the median income goes down, so will home ownership, and selling your home becomes more and more difficult.

Jun 25, 2014 12:20 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Good morning Don.  I agree and my analogy is real is much like the stock market.  Ever changing and as you said always going in cycles of up and down.  Right now we are enjoying a HOT Albuquerque real estate market and are thankful and blessed to be this busy!

Jun 25, 2014 12:35 AM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

John, we must take advantage of the cycles, and I am glad that you are reaping a harvest of activity!

Jun 25, 2014 01:33 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I would have to agree with you. Home ownership in our country still makes sense and buyers need to take advantage of the market while interest rates are still low. 

Jun 25, 2014 07:47 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I am not sure we will not have another correction here. We have a lot of foreclosures the banks have yet to release.

Jun 25, 2014 10:45 PM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

I didn't know that there was still shadow inventory.  Good to know, Jeffrey.  And, Debbie, if people don't get in now, they may never be able to!

Jun 26, 2014 05:26 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Don interesting take of that article, here in the Greater Los Angeles since last year we have seen 20-60 per cent price increases depending which pocket you look at. The REO and Short Sale market has dried up from what I can see in my market....Endre

Jun 26, 2014 12:04 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Don -- as Endre commented, many segments of the Los Angeles market are continuing to show significant increases over a year ago with still struggling inventory of homes available for sale.   We have many outside influences here as well which continues to contribute to multiple offers.   

Jun 27, 2014 10:23 PM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

I know that here in the Midwest, people are finding it difficult to stretch their budgets to find money for new housing that entails extra expenses, and yet our market is flourishing, too!

Jun 28, 2014 03:19 AM