Florida bubble? How about a 250 year all-time high?

[touchring]

http://www.fundmasteryblog.com/wp-content/uploads/2007/11/amsterdam-re-prices-091107z_huizenprijz_197427a.jpg

[bwhhisc]

What does the graph have to do with Florida?
Florida's real estate problems have w-a-y more to do with its combination of speculative overbuilding, the multiple back-to-back asskicking it got from 2 years of multiple hurricanes and the current inability to get reasonable insurance etc. The subprime mess effects Florida just like other places, but that is just one factor. Prices will probably come down a good bit more until speculators and investors move back in and the buying cycle begins again and prices move back up. Hopefully a few more hurricane seasons with no major insurance loss will bring those rates down as well.

[touchring]

Te graph is not florida's, but to point out that europe's bubble is even bigger. And since Europe is presently supporting everyone via sheer purchasing power of the euro, the real backlash is yet to come. :o

[rofsjan]

Herengracht is located in the historical centre of Amsterdam (The Netherlands).
The Netherlands has a different situation than USA.
In the Netherlands there is still a shortage of homes. There is no overbuilding.
Dutch banks were/are more conservative than in USA.

I don't know if it is possible in USA, but in the Netherlands you
pay less tax during 30 years when you have a mortgage.

And most mortgages have fixed mortgage interest rate.

[touchring]

Strict bank regulations only means fewer foreclosures. Prices will still move up and down according to the availability/cost of credit + market demand + speculation.

Speculation can be a big component - just look at oil prices. $100. Despite supply > demand. :o

[rofsjan]

availability/cost of credit + market demand + speculation

All these factors pushed up the prices in the Netherlands during last 20-30 years.
Many dutch people buy homes in Germany (where home prices moved up slower) near boarder with the Netherlands.