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

To: Jim McMannis who wrote (11733)	7/24/2003 12:27:23 PM
From: John Chen	Read Replies (1) \| Respond to of 306849

Jim,re:"talking..yada yada..head". I heard, the higher the interest, the higher RE price since they can talk people into buying now before no one can afford it. Always some listen, some don't. So the RE prices will continue to rise regardless of income. Fed/AG is using this tool to prime the war machine for a noble cause: ME peace .. world peace.

To: Jim McMannis who wrote (11733)	7/24/2003 6:03:32 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

The very first house I bought, rates were at 8.5% when we started looking and moved up to 10% by the time we bought. The market was very hot and everyone was in a panic to close on something. Six or seven years in, we exchanged the 30 year 10% for a 15 year 6.6%. Nothing could have dissuaded me from buying a house at that particular time, I didn't fully appreciate the effect higher interest rates had on my purchase and in retrospect I made a bad deal, learned a lot and made it up on the next few houses. It actually took a year and a half into the higher rates to cool the market, but it cooled quite a bit in some places and a lot of my friends stayed a few more years in their houses than they had planned and some had to pay to get out. The higher rates made little difference to those who lived somewhere they considered permanent and I think that is the key. Don't ever buy a house thinking you can flip it in a few years, buy somewhere you want to call home for a while.