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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (13)	6/18/2001 12:18:40 AM
From: GraceZ	Respond to of 306849

I was simply using "record home ownership" from your header post. I don't know if it's true, but if it is true it means that we have a lot of first time home owners and that always means that equity to loan value will be lower unless lending standards are tightened (they got looser, a lot looser). I agree that people with low amounts of equity or first time buyers are most at risk in a downturn. Those buying late into a frenzied housing market like California's are also at risk. The last time the country experienced a serious downturn in real estate it tended to be "rolling". It hit certain areas while other areas weren't hit until a few years later, meanwhile the earlier areas recovered. I expect we will see much the same when we get the next washout.