The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bentway who wrote (21938)	7/5/2004 8:07:33 AM
From: ChrisJP	Read Replies (1) of 306849

Hi J. Chris, Although there's merit to your response, I still think it means there is a housing bubble. The metro areas with the biggest populations participating in the housing market represents about 1/8 of the total US population. They own 1/2 of the "market cap" of the nation's real estate. I think if 1/8 of the nation real estate is in a bubble then the housing market is in a bubble. The other 7/8 of the country own the other half (of course 30% of the population own none at all, but lets pretend that percentage is spread evenly between bubble and non-bubble areas). So 1/2 divide by 1/8 = 4 1/2 divided by 7/8 = .57 This probably means that a person in a bubble area is paying 7 times more for real estate that a person in a non-bubble area. If you think the distribution of the 30% non-home owners is more concentrated along the East & West Coasts, then the divergence is even higher. Do people in the bubble areas make 7 times more than people in non-bubble areas ? Can this ratio be sustained ? I'm guessing it can't. Chris

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next