SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Vosilla who wrote (44722)11/17/2005 10:51:44 AM
From: Wyätt GwyönRead Replies (1) of 306849
 
In probably three fourths of the country RE is fairly or even undervalued today.

i think it is overvalued in many areas outside of the egregious coastal bubbles, but the high prices on the coasts make inland prices look reasonable by comparison, even if they aren't. many houses in central Austin, e.g., have doubled since 2000 thanks to the credit bubble which allowed lifetime renters to buy houses with their next rent check. i think there was a secular shift to capitalizing house values based on 5% ARMs with 40% or more of disposable income, compared to 8% 30yr fixed with 30% of disposable income back in the early to mid-1990s. if that gets unwound a lot of inland areas will be vulnerable.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext