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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Mike Johnston who wrote (32899)6/8/2005 4:30:07 AM
From: TradeliteRead Replies (4) of 306849
 
"Equilibrium" in a real estate market does not refer to price. It refers to a balance between supply and demand.

Short-term monetary and fiscal policy have little to do with long-term population and wealth gains which have caused a diminishing amount of land to be sought after by an increasing number of people.

Strict immigration and birth control methods might help, though! <<gg>>

Seriously, if the federal government hadn't made homeownership a priority and matter of public policy for the U.S. many years ago, we'd probably just have more and more people trying to cram into a diminishing supply of apartment buildings.

And we know who to blame for this trend....it was those darn pesky immigrants who started settling in New York, Massachusetts and Virginia several centuries ago.

<<With appropriate monetary and fiscal policy, the real estate markets would have been in the state of relative equilibrium, to the long term benefit of the economy.
However that was not the case and i would not expect that outcome under current circumstances. No bubble ever resolves itself with a state of equilibrium.>>
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