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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (5273)9/12/2002 9:06:39 PM
From: Elroy JetsonRead Replies (1) of 306849
 
Take special note of Chart #7 in the FDIC report.

" The Widening Gap between Home Price and Income Growth Has Raised Some Concern "

In spite of declining interest rates, this is the underlying real estate "bubble problem".

As the FDIC dryly notes, " Given that home price bubbles have occurred in the past, most notably in Texas, California, and the Northeast during the 1980s, and that their ultimate deflation resulted in significant negative fallout for these areas' economies and insured institutions ... ."

fdic.gov
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