Sunday, January 06, 2008

High End

Some evidence that the high end real estate market, which had been holding on, is crashing down too.

I was curious if this would happen. High end real estate, outside of NYC, tends to be a boutique product. It isn't simply a big house in a desirable place, but something in a relatively unique location which can't be duplicated. Ocean views, that sort of thing. So as long as there are a sufficient number of rich people chasing these boutique products the market would stay high even if the rest of the housing market collapsed.

But in this market, too, we're probably going to discover that there was a lot of flipping/speculation/outright fraud/lax lending standards which led to obscenely inflated prices.