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

To: Tradelite who wrote (6946)	11/19/2002 12:16:11 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

I actually think they were referring to the premium you pay to own the house as oppose to renting a similar property when they were calling NYC and San Francisco over valued. If the cost to rent a similar property is significantly lower then one could say the housing for sale is over valued because you are paying too high a premium to own it. The rents have dropped in both places so some people who might have been buyers in a higher rental market decide to rent instead. It's difficult to make good comparisons in a market where there are high end single family homes primarily because its difficult to find rentals that are comparable, but in a market where most people are buying and renting condos and townhouses you can make a very good cost comparison.