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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: qwave who wrote (78291)	6/13/2002 11:04:28 AM
From: augieboo	Respond to of 99280

Qwave, I don't know, but up here we think of SD real estate as "cheap," and LA real estate as "bargain basement."

To: qwave who wrote (78291)	6/13/2002 1:04:46 PM
From: morokko65	Respond to of 99280

OT:real estate What has happened in the last 3 years is that "California" type speculation has been seen in parts of the country where is was previously rare. High loan to value purchase mortgages have made low down payment purchases easy for folks who previously would not have qualified before. Then a equity lender will lend you your down payment plus $20-50K to furnish the place. All these loans will be paid back either by the borrower who have to curtail spending in the future or by the bank who will write off the loan. I have nothing against the American dream, but Real estate has turned into another massive one-way bet on lower rates and higher prices. All one-way bets have ended badly, and I expect that sooner or later this one will too. CA, NJ, downstate NY, VA, CO, MA are all going straight up now. If it was a stock market it would look pretty parabolic right now. At a time when jobs are stagnant to declining. Ultimately job growth dictates housing prices, regardless of rates. This increase could continue for a while though. Most bubbles suprise by their size & duration. As money gets pulled out of stocks it will go into real estate, now that it is considered a safe. "sure thing." I will add some long term '04 FNM puts as a hedge against the value of my CA property in any bear market rally.