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

To: JoanP who wrote (1615)	2/19/2002 10:45:55 AM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 306849

Running out of vacant land...Hmmm Care to explain why NY City prices are down 25%? There's certainly no space out here. There's also something called price elasticity. The more vertical the supply curve, the more chance there is for prices to fall steeply, particularly in a recession. Basic Econ 101.

To: JoanP who wrote (1615)	2/19/2002 10:52:27 AM
From: J. P.	Read Replies (4) \| Respond to of 306849

Running out of land?....it's all relative...depends on where you're talking about and when you're talking about it. I live in Chicago and there is the ever westward expansion of high density housing. So I guess the sure fire way to make money in real estate is to buy land/housing just west of the latest buildup. What was cornfields 20 years ago is now considered a "commuter" suburb. What is cornfields now will have a train station in 20 years I suppose. I've been griping about this "bubble" and am beginning to see the "bubbles" are very localized. I was researching a new job in another midwestern city and looked at realtor.com for housing prices in that city. A house that would cost me 375K to 800K here (4BR, 2Ba, 2 car garage, 2 story)costs about 175K in the other city. And I would venture to say the living conditions overall in the other city are much better (with regards to traffic, urban congestion, quality of life).... So maybe those who are loudest like me in calling this a bubble live in Chicago, New York, San Francisco, D.C, where the price of housing is about double or triple or 4 times the cost elsewhere. Jeez, in Chicago if you want a new mortgage (and want to live comfortably within your means - nowadays they'll finance anybody) you need to make mid six figures just to live in an average home....Those that bought 5-10 years ago or more are doing OK because they bought when housing prices were more aligned with incomes.