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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Mike Johnston who wrote (32863)6/7/2005 4:38:18 PM
From: TradeliteRead Replies (5) of 306849
 
You asked: what is going to propel prices further?

Maybe nothing.

Real estate markets don't just go up and down. Sometimes they operate in a state of relative equilibrium.

As for it being a "no brainer" to sell right now, seems to me it would take quite a bit of brainpower and soul-searching for the typical homeowner/family to decide to uproot itself, pay sales and moving expenses, squeeze into a rental costing thousands of dollars per month, give up mortgage-interest and property tax deductions, move the kids to a different school and neighborhood, alter the parental job commute, and hunker down waiting for the opportunity to once again find the right home--at a totally unpredictable price-- and pay moving expenses, transaction fees, and everything else it takes to settle into a new home. (Whew!)

Not everyone who has bought homes in the past five years is a real estate speculator buying properties he/she doesn't intend to occupy.

Not every town in America has been affected by real estate mania, and many haven't seen much of any price appreciation at all.

Not every buyer is coming to the table with only one income in the household and no down payment (so some of the statements about how prices can't go up because wages and salaries aren't going up accordingly do need some qualification every now and then).

So if a bunch of crazy speculators in certain cities get burned when and if the market turns substantially, they will richly deserve it. But they probably won't bring the whole country down with them. (My opinions only)
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