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

To: portage who wrote (164)	8/5/2001 8:43:19 PM
From: Jason W	Read Replies (1) \| Respond to of 306849

Home Price Rise Poses Little Economy Risk biz.yahoo.com <snip>As U.S. property prices soar in the wake of last year's technology stock collapse, economists are looking over their shoulders to the late 1980s property price bubble, whose burst pitched the U.S. economy into the last recession. The October 1987 stock market crash had little immediate broad economic impact. But as investors piled out of stocks into property, housing prices soared before derailing at the end of the 1980s as interest and mortgage rates rose. When the housing bubble burst, consumer spending slumped and the economy slid into recession....<snip> Jason W I believe history will repeat itself.

To: portage who wrote (164)	8/6/2001 4:01:10 PM
From: Nikole Wollerstein	Respond to of 306849

I have not seen so many for sale and for rent signs in his neighborhood since he moved there about 10 years ago

To: portage who wrote (164)	8/7/2001 2:24:30 PM
From: SpongeBrain	Respond to of 306849

CHUMP = Anyone who bought into the SF rental property bubble >He rented a one bedroom apt. in SF for $1,900 in January. Said that someone just rented an identical unit above him, with a better view, for $1,400 Finally, San Fran rents crashing. I feel terribly for people who bought into the commercial rental property bubble during the height of the fake dotcom economy. And I'm sure landlords were selling the property saying "Well, if you buy, you could really rent this place for $2200, but I take $1900 since its from a safe longterm tenant" 1900->1400 = over 25% drop in annual rent roll, ie: would have lost entire downpayment in 6 months, if you bought rental property valued at inflated rents. Probably wouldnt be able to make the mortgage anymore either. What's worse, a slow monthly bleed? or to bend over and sell at huge loss? 25% loss + 6% realtor fee...Actually, most overleveraged buffoons cant even afford to sell at that kind of loss. Hmm, never even mind the spike in energy costs since the NAZ meltdown...DOUBLE WHAMMY...