From a Warren Buffet Stock Meeting:
Munger: “You have a real asset-price bubble in places like parts of California and the suburbs of Washington, DC. ”
Buffett: “I recently sold a house in Laguna for $3.5 million. It was on about 2000 sq. ft of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre.”
Munger: “I know someone who lives next door to what you would actually call a fairly modest house that just sold for $17 million. There are some very extreme housing price bubbles going on.”
It truely is insane… Hopefully the bubble they speak of will burst soon.
Did I mention how HOT tiger is? I love widgets!
Incredible. Land is very high here in the DC suburbs but not that expensive. About five years ago the land for the development we are in, which is just less than 30 acres, sold for a little more than $7 million. Prices for homes have increased by nearly 50% just in the two and a half years we have lived here. But I don’t ever expect to see anything like Laguna.
Yeah, out here in some areas, house prices have been increasing by 100-120% per YEAR for the last 2-3 years..
It’s insane! Must be really nice for those people that bought houses more then 5 years ago!
wait… did you get the new tiger?
(i assume you are talking about apple…)
i want it.
bad.
ive been watching old apple commercials. its like porn.
Yes, yes I did get the new tiger!