The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (24550)	10/16/2004 12:10:10 AM
From: GraceZ	Read Replies (2) of 306849

Well I can honestly say it's not very entertaining watching you latch onto various stats without presenting an accurate or balanced picture. Or your complete inability to answer any of my counters. Like it should have been easy for you to look up and report what the net worth averages were for a 50 year old over time. I know simply because I looked it up before I asked you. It's almost as if you have no business training at all. Like you latch onto that equity extraction chart as if it's the Holy Grail that answers the "eternal question". The question is one I've heard a lot over the years from family, friends and clients when they perceive that someone else has something they don't have. My sister, Pris, is good for this one, she's been asking me for years as we drive through neighborhoods she can't afford, "Where the f---- are people getting all the money for these things?" Meanwhile she consumes every cent that comes into the house with her spending. You think you have the "eternal question" answered with that equity extraction chart yet you never bothered to check the other side or even the data source. The info is out there. You are suppose to be someone who works in RE as a consultant. I can honestly say RE isn't the only thing which is vastly inflated, I'd say your fee as a consultant is vastly inflated as well. The amounts that people put back into their houses in improvements and additions is around 30% higher than what they have collectively pulled out. Equity as a total hasn't shrunk, it rose 6.1% between 2002-2003 alone for a sum total of 8.4 trillion dollars of RE equity in single family residences in the US. I'll do the math for you. It translates into a rise of 521 billion dollars in just one year. Now think about how many years RE has been rising at double digit rates (maybe as long as you've been on this thread saying it was about to crash) and then do that math and then tell me what percentage 333 billion (over three years) is of that rise. BTW the total equity (8.4 trillion in 2003) accounts for the cash outs and home equity loans. Here's your homework, tell us what the figure was in 2000 then explain why it is that you think it has declined.

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