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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Lhn5 who wrote (36145)7/24/2005 4:05:15 PM
From: Elroy JetsonRead Replies (1) of 306849
 
Every bubble in hard assets, such as real estate, commodities, or art, has always over-corrected on the down-side. This is a function of human nature, not asset type.

Post-bubble real estate prices in Southern California declined to the point where rents provided overly-generous yields in 1891 and again in 1993.

This is also true of every post-bubble period in between these dates.

So you don't think real estate over-corrects on the way down? I smell catastrophe in your future.
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