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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (172647)	6/13/2002 11:59:49 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

Average Home Price for ALL (not just some ritzy suburb) of Nassau County, New York hit $400,000+ (median around $325,000). Median Property Tax is around $6,000 year. Median Family Income is around $60k. What happens in these situations is that people who own don't sell their houses because they can't afford to buy another like it or better even with all the cash they might get from the sale. This reduces the supply even further so the houses that are for sale sell at higher and higher prices until you run out of marginal buyers who are willing to ante up to live there. What is funny (from here) is that the rising prices tend to make people want to buy into the area even more, no one wants to buy into a neighborhood where prices are falling (I know this first hand). But the prices are being determined by fewer and fewer sales. Sound like the way IPOs used to fly up to ridiculous prices and market caps, by restricting the available float. About a month ago my local newspaper's real estate section had a cover story about how desperate the real estate agents are for supply. They have a ton of buyers and not enough sellers, the supply of homes for sale in my area is down by a third of what it was four years ago. To get into the highest demand neighborhoods people have taken to reading the obits.