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

To: Tradelite who wrote (2027)	3/3/2002 6:15:59 PM
From: Snowshoe	Read Replies (1) \| Respond to of 306849

why would anyone take a 33-percent loss of the magnitude that you describe by selling the house when prices are low? My experience was in Anchorage after the oil boom went bust, and there was a feeling here that prices would NEVER come back. Lower quality properties were down %50-70%! Most of the folks who walked away had purchased within the previous five years. All they really lost was the down payment, not 33% of the purchase price. Of course there were others who worked things out as you described, but there were difficulties. People with good jobs were often trapped in small condos, which they had to rent out at a loss so they could buy larger homes. I thought Edelman's article was idiotic because it made a general rule out of a tactic that is only appropriate for certain situations. At the bottom of the market after the crash I did buy a house with a 30-year mortgage (which I later refinanced to a 15-year).