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.

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

To: marginmike who wrote (190620)	9/5/2002 9:25:43 AM
From: stan_hughes	Respond to of 436258

I'm saying what everyone else is saying, I think -- (a) that the low rates are displacing no-risk renters into an equity risk position as owners (b) that if we aren't there already, we will soon exhaust the marginal supply of new buyers, i.e. anybody that wants to buy a house will have done so. It is typical of late stage R/E markets to find people flipping the same properties amongst themselves, as there are no real new buyers -- it's virtually the same action as a stock market top (c) a large proportion of the new buyers probably don't understand what they're really getting into, and therefore haven't planned for how they will deal with any change in their plans (d) once the ball starts rolling downhill, the lack of liquidity inherent to real estate is going to come back and bite a lot of people in the ass. Anyone who has guaranteed a mortgage commitment is going to find themsleves covering the mark for collateral that isn't even close to the size of the debt