Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Les H who wrote (2613)	5/9/2002 4:27:23 PM
From: yard_man	Read Replies (1) \| Respond to of 306849

I favor a gap down in the morning and don't look back scenario myself -- of course, I'm not emotionally or financially prepared for it -g- Ooops -- you meant housing -- ... nevermind <vbg>

To: Les H who wrote (2613)	5/9/2002 4:29:39 PM
From: yard_man	Respond to of 306849

investavenue.com

To: Les H who wrote (2613)	5/10/2002 8:57:21 AM
From: Bridge Player	Read Replies (1) \| Respond to of 306849

<<pundit says market leading to crash>> Perhaps it is worth noting that the "pundit" is British and refers to their housing industry. <<Economic pundit says housing market is heading for a crash By Katherine Griffiths 09 May 2002 A leading economic forecaster yesterday warned that the housing market is heading for a crash unless the value of homes starts to slow. Roger Bootle, manager director of Capital Economics, said that this year's forecast growth of 15 per cent is unsustainable and that the housing market is "heading into dangerous territory". "It is looking severely overvalued and if we carry on like this I would forecast a crash," he said. Mr Bootle, a well-known voice of caution on the future of house prices, basis his analysis on the cost of buying a property compared to earnings. He told a conference of building society and mortgage lenders that the ratio of house prices to earnings is approaching the dangerous territory it reached during the late 1980's housing boom, which was followed by a crash that plunged buyers into negative equity. The ratio of house prices to earnings, which stands at 4.5 times, according to a Nationwide Building Society, is as high as the second to last peak in the market, in the early 1970s. Mr Bootle predicts the Bank of England will not try to slow prices by increasing interest rates, leaving the alternative of either a crash or a more gradual slow down. He predicted property prices would turn towards the end of the year, after continued growth for the next few months. Also from the News section. Channel 4 chief warns new Bill could force early privatisation Telewest pays out £500,000 in bonuses>>