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

To: Tradelite who wrote (592)	8/29/2001 9:39:42 PM
From: JRI	Read Replies (1) \| Respond to of 306849

Have builders gotten any smarter in the last 10 years? (I mean the question seriously, ie., in your opinion, are they more conservative than 10 years ago, and hence could that prevent a total overbuild...various money pumps not withstanding)..

To: Tradelite who wrote (592)	8/29/2001 10:03:35 PM
From: jjs_ynot	Respond to of 306849

Non-conformaing loans (above 275 K and above 80 percent Loan to value) are still primarily packaged and resold. A very small percent (probably less that 5 percent) are warehoused by the lending institution. In any case, all that matters is meeting the underwriting guidelines. Whether the borrower can pay back or not is inconsequential to the mortgage originator. The only difference is that the securities don't have Fannie or Freddie insurance.

To: Tradelite who wrote (592)	8/29/2001 10:32:22 PM
From: Snowshoe	Read Replies (1) \| Respond to of 306849

>>Today, you don't have a real estate bubble...you have a limited supply of housing for a growing supply of people of home-buying age. Period. If jobs and incomes get hurt by the economy, prices will come down. The number of people needing housing will not decline.<< It seems to me that there is more crash potential with commercial real estate than residential. I heard a report on public radio today that the discount retail sector occupied by Wal-Mart, K Mart, and Target is seriously over-stored. The report suggested that K Mart may have to fold. This would put a lot of excess square footage on the market that is not really needed for anything.