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

To: ild who wrote (6587)	11/5/2002 2:53:52 PM
From: Elroy Jetson	Respond to of 306849

A strong economy would bring rising incomes (and thus more purchasing power for real estate), but a strong economy is likely to be associated with a rise in interest rates (thus less purchasing power for real estate). The recent series of 18% annual price rises for real estate while incomes have increased closer to 3% strongly suggest an imbalance which will be corrected one way or another. I think this suggests a limited potential upside with a significant downside. The price impact of the change in psychology to a "buyer's marker" already so apparant in the single-family home market will become more obvious in the Spring sales season.