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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Valuepro who wrote (288014)10/31/2010 7:35:36 PM
From: Les HRead Replies (2) of 306849
 
The demand was created by lowering interest rates and loosening credit standards. That increased the number of 'qualified' candidates for homes at ever rising prices. The stated loans became necessary when it became impossible to justify the loans based on income. Eventually, prices have to come down to a level that's justified by income and credit standards have to revert to some normalcy that limits losses.
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