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

To: Tradelite who wrote (11765)	7/25/2003 10:56:41 AM
From: J. P.	Read Replies (2) \| Respond to of 306849

<<Those people (buyers) ARE the market.>> I wholeheartedly agree with you on this point. The prices are the prices because that's what people are willing to pay. But my feelings are that the supply/demand curve has been shifted not by demographics, but by the easy access to capital. Easy lending policies have led to easy access to capital not seen before. So you have a whole group of new buyers who no longer need to raise the amount of cash needed before, and no longer face the scrutiny that existed in the past. This is all well and good as long as the bank's easy lending policies stay in place. This is reflected in asking prices and it's safe to dive into pool. The danger now is that you jump in, and the banks pull the plug on the easy money and instead of landing in the water you land on the concrete. All of the sudden you have a big overleveraged depreciating asset.

To: Tradelite who wrote (11765)	7/25/2003 2:43:38 PM
From: fatty	Read Replies (1) \| Respond to of 306849

>Those people (buyers) ARE the market. The market isn't something which exists without them and "punishes" them. The market is doing what it's doing because the buyers are buying. Discussion can get pretty mixed up if this concept isn't well understood. I think it takes the seller, the buyer, the broker and the mortgager to make a real estate market. Of the four parties, the buyer is the most unfortunate one IMHO.

To: Tradelite who wrote (11765)	7/25/2003 3:57:17 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

...Americans buying homes because they NEED them... Yes they do but when you have renters turning into buyers leaving rents stagnate to down and prices climbing. In a climate that says there's too few units to accommodate need. "As what's reported here in N calif bay area." Something is out of whack? I don't know what that is or even if that's a true statement. Lower rates should equal lower rents but I can't make my numbers work. I suppose I'm another small fish being eaten by the bigger. So be it. I'll continue to stand back and be educated.