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

To: patron_anejo_por_favor who wrote (5827)	10/3/2002 1:16:16 PM
From: JRI	Respond to of 306849

interesting thanks....eom

To: patron_anejo_por_favor who wrote (5827)	10/3/2002 2:13:57 PM
From: organicgerry	Respond to of 306849

SBerglowe has reported weakness in real estate values on the east coast of Florida. Home values have appreciated rapidly in SW Florida over the last few years, last year was the biggest increase at 17% Waterfront property has appreciated even faster, some of these values have doubled and tripled over the past few years. There is a lot of overbuilding on speculation by developers, tens of thousands of new homes have been permitted. Naples was ranked the second fastest growing city in the US, after Las Vegas. A year ago, houses sold fast at or very near the listing price. Lately it seems houses are on the market longer and sell for 10-20% below listing prices. I don't know that prices will drop, but that did happen here around 10-12 years ago. If the bear stock market continues real estate will eventually follow, I understand there is a 2-3 year lag period. If there is a deflationary environment (and I view that as an increasing probability -- the stock and bond markets are reflecting this possibility) all bets are off and real estate values everywhere will plummet. Bottom line -- SW Florida is one of the strongest US housing markets but if the tide goes out all the boats will fall.