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: Jim McMannis who wrote (9978)	3/26/2003 12:15:49 PM
From: Lizzie Tudor	Read Replies (3) of 306849

RE:"Given that 2 mos of my salary is about what my parents paid for a house in 1972 in California... and that same house would be worth maybe 700K now... I think we are fairly safe from this fate." If you lose your job what does 2 months salary buy you? You have a point- but its all about perspective imo. I'm working in IT in the most hard hit sector of the economy right now, telecom equipment. Most all who were going to lose their jobs in this arena, have. We also have the double whammy of outsourcing hitting the high tech careers. I can't prove this but my feeling is that what were $800K houses in the bay area in 2001 timeframe are now selling for somewhere in the $600s. The million dollar homes aren't selling much at all. Interest rates have held this boat afloat and any sort of increase there which is bound to happen eventually will probably knock another $75K-$100K off the $600-$700K homes. So at the end of all this, it will be quite a correction in home prices in the tech areas to mirror what has happened in the stock market, thats what I am thinking - from peak to trough maybe 40%. (again, statistics won't show this) We already are seeing evidence that we are not Japan in the stock market. I doubt we are Japan in the real estate market either. 2003 is not a bear market for stocks, especially in some areas of technology like the internets. I know the CFZ is calling this a bear market rally but thats what they said in 98. I think stocks are climbing their way out of this, therefore the most dire doom and gloom scenarios just don't seem likely if you ask me. L

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next