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

To: Tradelite who wrote (1932)	2/26/2002 4:23:15 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

<<here's yet another fellow who takes it upon himself to proclaim real estate "overpriced." Overpriced compared to what????>> I don't think he said that...he addressed the other side of the trade, that there is no shortage of supply. And you know what...he's right. Since the market is all knowing, it provides EXACTLY the right amount of supply to meet demand...and therefore everyone is housed except the homeless. By definition, as it were....

To: Tradelite who wrote (1932)	2/26/2002 5:30:12 PM
From: J. P.	Read Replies (4) \| Respond to of 306849

<<Oh my oh my....here's yet another fellow who takes it upon himself to proclaim real estate "overpriced." Overpriced compared to what???? >> Here we go again! In Chicago, a halfway decent 4/2 starter home in a halfway decent neighborhood is about 300K. This isn't luxurious mind you, just OK average suburban sprawl. Now assuming the monthly payment with taxes, etc is 3000. Now if you use the benchmark of 25% of your gross, then you need to gross 12,000 a month to reasonably afford that home. That is 12 X 12,000 = 144,000. That's a lot of dough, that's good VP pay and even CEO pay for some companies. OK, say it's a two income home, that's 72K each. That's got to be better than average. So I'm saying the prices are too high based on the benchmark of salaries. So the guy making 144K a year is living only on equal footing to the guy making 70K a year who happen to have bought 3-5 years ago. Isn't there something wrong with this picture?

To: Tradelite who wrote (1932)	2/26/2002 9:20:16 PM
From: David Jones	Respond to of 306849

If Swenlin has the supreme wisdom to decide the dollar level at which real estate is "overpriced", could he also exercise a little of his psychic power and tell us when real estate is "underpriced"????? I'm dying to know. <<gg>> How that is an excellent question!

To: Tradelite who wrote (1932)	2/27/2002 4:40:57 PM
From: paul ross	Respond to of 306849

I went to an economic conference in the mid 80's where one of the speakers predicted that the US economy over the next several decades would not experience an overall recession but what he called "rolling recessions".Some areas would be up while other areas would be down. Though not completely true I feel it has some validity. Real estate prices have followed this rolling recession idea. In the late 90's LA and Boston were down while Portland, Or. and Denver were going up (there are more examples). LA and Boston I believe have been up and down a couple of times since the late seventies. Though some areas appear to be overpriced, there are still areas of the US where starter homes are under 150K. And areas like Orlando where they are under 100K. The key for the RE investor is to find and invest in those areas that have bottomed and are on the rise.