Re: housing market correction coming?
I have a friend whose opinion I value highly when it comes to stuff like this. He's an economist who got his degree from the London School of Economics, he own real estate here in Seattle, and trades stocks for a living from his home in Alki.
I asked him this very question over beers awhile back and he thought that Seattle RE was susceptible to a market correction (not just slow or no growth).
The good news is that (in his opinion) some of the hotter markets like LA & the SF Bay area will be a leading indicator for the rest of the country if a RE correction does hit. His thought was that there would be a lead time of about 6-12 mo. from the time LA RE starts sliding south to when we will feel it here in Seattle.
How to best profit from a correction, I suppose, would be to sell all your RE and get into a mutual fund like ProFunds RE Inverse fund.
I don't know what exactly I'm going to do if things go south, but I'm keeping an eye on California.
From north of the city,
BM
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