Real Estate Bubbles
I am currently reading a book on valuation of real estate in Argentina. The book is two years old; but it talks about real estate cycles and bubbles. In the USA it has been so long since our last fractured bubble that we forget about them. The book discusses the bubbles as a regular business occurrence in Argentina. It has charts about the exchange rate, the price of properties and the behavior of the stock market that draws relationships between these things and bubbles.
The book discusses the price of the house compared to the rent of the house and draws conclusions about how the ratio can deter or encourage purchases. It also shows that those relationships and their effect will be different in different localities. It also shows how this relationship can predict a bubble.
Sometimes USA REALTORS think that our market has the best ways and the best knowledge. The more I travel and the more I study the real estate materials in other countries, the more I think we have to learn from them. Even some of the newer markets have a lot of novel approaches to the industry to offer.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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