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: TheStockFairy who wrote (51339)4/4/2006 11:06:36 AM
From: ChanceIsRead Replies (2) of 306849
 
>>>I'm probably buying a TOL house this year,<<<

Thanks for sharing your experience. i don't doubt it is the truth. You are probably looking at very localized conditions.

The broad picture doesn't look too good. All of the classic ratios are way out of whack. You have to ultimately ask:

1) Can salaries continue to expand at a rate equal to housing prices? Indications are that they have been lagging.

2) Will interest rates remain low? Surely the drop in rates has enabled the rise in house prices. Real rates have been negative for a long time. They are finally starting to adjust upwards agian. That will stop the housing rise. It might not invert it. I believe that low interest rates were financed by Saudi and China. How long will they invest their oil and manufacturing surpluses in the US ten year note if we don't firm the dollar by raising rates?? With what have Americans been financing the higher cost of oil??? I think any salary increases have been going to home purchases. The house ATM has been paying for the increases at the pump.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext