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: Valuepro who wrote (31302)	5/16/2005 2:51:03 AM
From: John Vosilla	Read Replies (1) of 306849

Logically, would it make sense to compare how home values stack up in a neighborhood to historic multiples of home values to median incomes and rents over time in that neighborhood? Even in the most overpriced of metro areas today going back to 1960 multiples of 2.5 to 3 times income and GRM's in 7-10 range were common. The latest bottom in the mid 1990's actually came close to these figures while today I find that we could be easily more than twice over the 1989 top. It seems by looking at real estate in this way you can always take out the financing and manipulation of CPI by the BLS. To me it is totally ridiculous for someone to tell me everything will be fine in a market just because he bought a house in NY for $40k in 1980 and it is worth a million today (so it will automatically trend at the same rate going forward)like that realtor you always hear on the Fox show Bulls and Bears. My guess is that 14% annual rate might be zero at best the next 25 years since prices are so overvalued compared with real fundamentals.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next