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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (172081)	7/20/2003 8:47:08 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 1576592

RE:"I agree with you about that; I just don't know that the numbers of people doing are enough to significantly affect housing prices." I see it everyday. If you look at a housing price chart you can see the beginning of the parabolic move in housing prices begain in 1997. The Afterburner kicked in late 2000- 2001 when AG started lowering rates in a panic. The stars really lined up then and money poured into Real Estate. The last year has really culminated in a steep rise. I'd say weve seen a triple in housing prices on average around here sine '97. Probably 25% in the last year alone. Of course people use this opportunity to cash out of their high tax state and move to places like Florida, Nevada, Arizona...driving prices through the roof and putting loads of pressure on the environment. A young couple has to live in a beater or pay $200,000 to 300,000 for a starter home with basically 100% financing. OK the payments are low but what happens if the bubble bursts vis a vie interest rates going up should the rest of the economy recover and the price of the home drops.....? The government should never have let housing prices bubble like this... Then again this administration is basically hanging on to the cliff hoping to get to the next election and they will print money to get there. Trouble is it doesn't go where it's needed...because of a whacko tax system. Jim