The New Bull Market. 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 New Bull Market.

RMBS 98.04

+1.8%

Dec 3 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rich1 who wrote (719)	6/17/2002 2:05:06 PM
From: Chip McVickar	Read Replies (1) of 1750

>>Obviously I agree... Not necessarily... >>45 year olds with teenagers... decide to move to smaller houses/condos/retirement homes/ACLF's...etc... The move out of these expensive homes here in the Northeast may have already begun. What I'm suggesting is that the real estate market may go flat for some years and those who built these "Monsters" will probably not get their investment back at the historical rates of real estate appreciation. The real estate market has benefited from two long-term trends after WWII with very low mortgage costs and modest but sustained inflation, and varing degres of sustained economic activity.... which was a sought of guaranteed appreciation. I don't believe we can count on that condition going forward. If we see higher rates of real costs of borrowing and a substantial slowing in salary growth, people will have to make agonizing decisions on real estate. Many will continue the down sizing that has begun to show up here. With a recovery that is sluggish, household incomes decreasing, spending declines, and barrowing costs staying where they are or slightly higher, and a sustained war footing with all it's complications, we will not get a typical rebound. But years of indecision. In other words todays renter can expect to buy a monster house at todays modest house prices in 5-10 years as long as they can afford the higher interest rates, and pay the taxes. But the modest house owner will see their house value go sideways. I'm not an expert in real estate as you are, but couldn't this happen...?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next