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!