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 (25905)	12/13/2004 12:40:44 AM
From: mishedlo	Read Replies (1) of 306849

The flaw in your belief, that Home Builders make more money when land prices decline, is two-fold. First Home Builders have large land inventories on which they take enormous losses if land prices decline. Second, the demand for homes declines precipitously when home prices decline. Many people with more homes than sense unload into the declining market. Damn, you burst my bubble. I thought it was a perfect never fail business that always made money no matter what happened. Mish

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