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: Doughboy who wrote (14953)	11/10/2003 2:14:19 AM
From: Elroy Jetson	Read Replies (3) of 306849

Why did home builders take a tumble on Friday? It was due to downgrades based on price by a brokerage firm. I was just talking with a friend who works for one of the largest home builder in the Los Angeles area. Their marketing department has developed a profile of their typical buyer. These homes are $1,000,000 and 1.5 hours drive (each way)to downtown Los Angeles. The typical buyer is a two-income couple who work in Los Angeles and own two new-model leased cars. It is very unusual if they can come up with more than 3% for the down-payment. Just picture that, a couple with net assets of say $50,000 buying a million dollar home that will require a 3 hour daily commute, as long as they are employed. It will be interesting to see how long the home owners in that development can retain ownership of their houses.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next