Quote:
Originally Posted by leftopolis
There's hardly a worldwide financial crisis...it's a US dollar crisis. The US dollar has dropped sharply in the past 5 years vs most worldwide currencies. The housing/ subprime blah-blah-blah is largely a domestic issue as well, and it is not universally gloomy throught the country. In much of the country it's more of a mild slowdown which is expected as real-estate has always been cyclical. Finally, the market for downtown luxury condos is competely different than detached suburban homes--so it's possible to be experiencing a general real estate downturn(as is the case currently in Sacramento), yet still have buyers for downtown condos. San Jose has 4 separate downtown condos under construction(20 floor range approx.), and another 1/2 dozen or so still expected to start next year.
BTW, one of the San Jose projects under cunstruction is a CIM project:Tower 88 at Central Place. While not as stunning as the original plan, imagine this project in it's place but with another 5-10 stories(San Jose's had to stop at 22 due to the airport). I'm confident that CIM will have some preliminary drawings by early next year.
Great pictures from ther builder's website:
http://www.webcor.com/complete.html?proj_id=232 |
In regards to the "housing/subpime bla bla," I think there is a crisis. Those involved (lenders, government) are downplaying the issue because it's embarassing, but Congress is considering bailouts for lenders and regulators (Fannie Mae, etc). That's a HUGE deal - the Federal government will probably have to give lots of money to the same lenders who've been aggressively selling bad loans (all that spam and telemarketing). The same lenders who are now harrassing millions of defaulters. That may be the quickest way to get the housing market back on it's feet, but a bailout would have farther reaching ramifications. And it is "worldwide" - Barclays Bank (UK) Landesbanks (Germany) and many other European banks have extensive US portfolios and will be part of any bailouts.
I'm not a financial expert. All I'm saying is that, at least for the next couple years, residential constuction in the US is going to be very slow. Nationwide, the residential condos being built have all been speculative. The buyers have been investors hoping to sell to underqualified buyers - theat's what's been going on in the market for years now. So, I wouldn't get too excited about any residential condo projects that aren't already under construction.
I hope I'm wrong. I really do. And it is possible that Sacramento won't be as badly affected.
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that's where Saca buried the deposit money.
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