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

To: nextrade! who wrote (3631)	7/28/2002 12:50:43 PM
From: John Chen	Read Replies (1) \| Respond to of 306849

Nexrade,OT:"Is this true?. Don't remember which thread, it said: "$300/annual salary engineers (EE/IT) eager to work for US companies". Holly Mo-Mo, my impression was '$3K/yr to $10k/yr', from China and India. Where this '$300/yr' come from? I think it is a 'smoke-screen' to lower the salary in US. This is really bullish for US corporations and RealEstates. The demand in housing will be so great, Fed is devising new kind of mortgage, ie: '$0-down, No-payment' bag-holder mortgage, there is no reason $350-500K+ starter home in Chicago, won't becomre $1M soon. This is NO JOKE. There is no liability. You just live in a house free, until next guy pickup the 'no-payment ,$0-down' bag-holder mortgage, when you don't like the pressure of holding the bag. Too good to be true!!! Not really. Think about it, you are part of the scheme for US to funnel money into the "SYSTEM". As a reward for participating the grand scheme of thing, you are provided free housing for the effort. Government may guarrantee it won't hurt your credit (idiot, no one needs credit in US). This is no ENRON, this is the FED, so don't worry.

To: nextrade! who wrote (3631)	7/28/2002 3:47:45 PM
From: Elroy Jetson	Respond to of 306849

"The bigger picture, however, suggests the spread between offers and asking prices is widening and few people want to budge. Chip Case, a real estate economist at Wellesley College, routinely makes presentations to small groups of brokers from different areas. He said their comments make it clear the ritzy real estate market is beginning to fizzle out, but slowly and one town at a time." That's exactly what I'm seeing in Los Angeles. In the last two months the prices owners are asking have jumped up by 25 or 30%. The result has been to shut off the market. Homes and Condos have been sitting there for sale with virtually nothing going into escrow. After the initial Broker Open House, places on the market attract no interest. If this follows 1989, next year the people who need to sell will lower their prices to what they should have been in the first place - but that will appear to be a huge decline in sales price which changes the market psychology. Nothing sours a buyers interest as much as falling real estate prices. People want most what they can't afford or have. Ever see a person who's been told a home has already sold? They're willing to pay anything to make a back-up offer. Once prices start falling no one wants to buy.