by Calculated Risk on 3/07/2005 03:25:00 AM

Two articles on Real Estate caught my attention tonight ...

The first is a "How to Flip" article on ABC News! (thanks to Patrick)

Sensible Shopper: Real Estate 'Flipping'
What You Need to Know to Get in on the Trend in the Hot Real-Estate Market

Oh my! Of course I've been telling people that it is rational to speculate in Real Estate as long as very little of their own money is at risk. I've even explained "moral hazard" to a few people.

The second is a monthly newsletter concerning Bay Area Real Estate (Northern California). Here is the executive summary:

"The SCC real estate market has lost much of its steam in terms of volume. Decreasing volume is 'normal' behavior for the Santa Clara County real estate market for the end of the year. It is the degree of the decrease that remains a concern. Volume went from 154% of the 10-year average to 132% in June. Then went from 132% to 114% from mid-November to mid-December; and finally from 114% to 98% starting January 12, 2005. SCC only experienced 44% of the offers seen during the peak summer. This is a lower percentage than any of the 10-years that we have data for."

Blame it on the rain?