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

To: Tradelite who wrote (1901)	2/26/2002 11:38:24 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

The experience with my friends and family members is that they can't find houses that they can afford where they want to live, while the houses they already own are starting to soften in price. They are pretty miserable because they feel like the homes they want are getting further away and they are getting trapped in the homes they own which were never meant to be their final home. There's also a little of that thing where the rising prices in the desired neighborhood is creating the demand, people want to buy before it goes up even further and they want to get out of where they are before it drops. I think houses are a lot like cars in that people have a lot of emotion tied up in purchasing a home, they are less than reasonable when buying a home. Plus they tend to think homes that are priced below the comps have something wrong with them while those that are priced high are somehow worth more. I bought my present home from a distressed seller in a bad market with low interest rates....so I got a great deal. All of my friends, when they first came to visit spent a lot of time trying to figure out what was wrong with my house because I got it at a very reasonable price, they were sure we'd gotten snookered. Its only over time that they have come to realize what a great deal I got. Now they all want to buy because prices are a lot higher out here! The way people buy houses reminds me of high school where all 1500 guys in my high school wanted to date the same 6 girls. They were momentum buyers and didn't have a clue about long term value investing.