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

To: Beachside Bill who wrote (11938)	7/31/2003 12:52:30 AM
From: Elroy Jetson	Respond to of 306849

Your featured report shows the real story in chart number 17. rbc.com Vacancies for residential properties have reached a 45 year high. The economic return on a residential property investment is at an all-time low. This is a record property bubble. You can now purchase an "internet stock" home at 500 times earnings - or you can wait for the bear market. The chart you mention, #16, shows that the number of months required to sell a home does typically vary from 4 to 8 months. While prices do rise and fall, serious sellers rarely wish to take years to sell their property and so price their property accordingly. Chart #2 in this report shows that home prices over the past decade or more have not even kept up with inflation. This reports shows an investment in a home is a sure-fire loss. Compare this poor showing with the following chart of the spectacular inflation adjusted returns provided by the stock market, even after the recent bear market. A gain 300% greater than inflation over the same period! home.earthlink.net