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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (2769)	6/27/2003 12:14:47 PM
From: GraceZ	Respond to of 4907

That's my point... people still buy, live, breath... and are every bit as happy as anyone else no doubt. And they probably don't give a rats ass about appreciation. Yes, but this is an example of people who are happy to stay somewhere that isn't appreciating. I was talking about what motivates people to buy a house not what motivates them to stay in one. Some of the most stabile neighborhoods are those where housing has little or no appreciation or prices have fallen. I don't think you can surmise that they stay there because they don't care whether their house appreciates or not. I remember a local radio program about real estate in Baltimore City where the local promoters were talking about how great it is that houses are going up in the city. Then they opened the phones. Caller after caller complained that it didn't effect them, they were trapped in houses they couldn't sell that hadn't appreciated at all and they felt stuck while where they wanted to live got further and further away from them financially. >>>They expect any house that they buy to appreciate.<<< No, they don't. Well then maybe you think they want something other than what one could surmise by looking at how they act. Demand for housing is far higher in areas where house prices are rising steadily.

To: LLCF who wrote (2769)	6/27/2003 1:30:43 PM
From: GraceZ	Read Replies (1) \| Respond to of 4907

I reread the post you originally replied to and I want to make it clear that I didn't mean to imply that people ONLY buy houses because they expect them to appreciate or even that this is the primary motivation (the way one would buy a stock). The thing about houses is that they share the aspect of a consumer good and that of an investment. When people choose a house they are most concerned about the things you cite, but the investment aspect does play an important role. Otherwise I wouldn't have spent two years listening to people over on the Real Estate Crash thread complain that while they wanted to buy a house, they felt that houses were over priced and they didn't want to buy a house whose price was then destined to fall from where they bought it.