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

To: TobagoJack who wrote (457)	8/28/2001 7:13:20 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Jay, people who buy homes to live in don't look at the economy everyday and think about what might be the best time to sell. They buy and sell when their life situation demands it or makes it a good option. It most often will have nothing to do with timing the most profitable sale of their home. When an older person (i.e. baby boomer or baby boomer's parent) decides it's time to sell, he either won't or can't wait around for an optimum market condition because he has other goals in mind....and if he's owned his home a long time, he thinks he's cashing out a fortune no matter when he sells----that's exactly why people should start early on home ownership if they can. Remember that mutual fund investments work the same way ----it's not timing the market that counts...it's time IN the market and the value of compounding that makes a mutual fund or real estate investment a good investment. Please don't confuse timing the real estate market with timing a stock trade. I've worked with too many homeowners over the years to even entertain such thoughts. And as I've posted before, I have worked with some but don't know many people who have negative equity in their homes.......where are you all meeting these types of people????

To: TobagoJack who wrote (457)	8/28/2001 9:50:30 PM
From: Juster	Read Replies (2) \| Respond to of 306849

Hi Jay, I bought a new home in 1985 in San Diego for $150,000. If you compound 5% annual appreciation after 16 years the net worth would be about $325,000. My house is probably worth $380,000 now. Not out of line at all especially if you count the $75-$100 K in improvements I have put into it over the years. My conclusion is that real estate just keeps up with bond rates over time. Timing can give you an abnormal return or loss only in the short run. Of course none of this applies in remote areas. Gee, this sounds just like the stock market. Justerx