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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: C.K. Houston who wrote (68)7/5/2001 12:50:25 PM
From: davidrmmRead Replies (1) of 306849
 
I agree with concerns of a Real Estate "crash" and your past time line was very informative. I am not a financial guru so I am not aware of the present financial developments that might cause the collapse of real estate and/or deepen it WHEN it occurs. What is going on now that is similar to 1979 to 1986 other than some oil price inflation? I missed it in your historical time line. At present there are differences i.e. double digit interest rates as a precursor. Right now Fed interest rates cuts seem to be holding it up and IMO why we haven't seen a down turn already.

My wife wants to buy or build a new home NOW and I am trying to hold her off. What trends are you seeing for now? In Houston, TX, apartments have been going up like crazy and behind every rock and tree there seems to be a new real estate development. That trend is very much like the early 80's. I see an over build of inventory but thought the down cycle would have happened before now. Prices still seem to be holding up and going up.

If the stock market begins to get well in the third quarter do you still predict a real estate slump? I would appreciate any in sights.
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