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Strategies & Market Trends : The New Bull Market. -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (710)	6/16/2002 11:17:14 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 1750

Yes, I see... but I think that could take down the whole real estate market in turn... if a 500K home would sell for 250K then a 300K home would then sell for 150K, and so on... wouldn't that see reasonable? Why would someone pay 300K for a smaller home when they can get a steal at the same price for a larger home..... GZ

To: Rich1 who wrote (710)	6/17/2002 11:55:53 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 1750

Boston saw an explosion of fancy homes in the early 80's and in 1987-89 their prices collapsed along with S&L's and the condo market. Beginning in 1995 another explosion in demand for fancy homes..., even larger then before has dominated the Boston area. Small homes [$350-500,000] with lots that could accept zoning were torn down and $1.5mill palaces were built. The neighborhood streets now look like a volume bar chart with extreme volatile bar patterns. By the end of 2001 the high-end homes have stopped being built and the market for more moderate homes has sustained their values and are rising 8-10%. Even condos are still holding their value. Where this midrange market goes now is anyone's guess. But safe to say it depends on how safe the populations attitudes are to sustaining their earning capacity going forward. I doubt there's any kind of a crash without outside unexpected stimulus. But one good expect a slowing and leveling off of demand.