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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (30500)4/1/2008 10:37:07 AM
From: Tapcon  Read Replies (1) of 78615
 
Jurgis, I'm not sure where you're going with the observations of whether or not house "values" and square footage of houses have risen (they have), and whether building costs have risen. One of the main points is that relative to incomes, the assumption of debt in recent years is WAY off trend.

So regardless of house value, square footage or building costs, if the average buyer is neck deep in debt, with tightening credit and credit covenants, the demand must pull back, reducing the inflated "value".

Unless I'm missing your point?
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