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

To: bentway who wrote (14795)	11/5/2003 10:31:32 AM
From: Tradelite	Read Replies (2) \| Respond to of 306849

<<homes in some of the highest priced areas are WAY overpriced, getting beyond what most people can reasonably afford>> To a real estate salesperson, the term "overpriced" is applied to property that won't sell, because the market (buyers) does not regard it has being a good value for the money. When properties are selling like hotcakes, it can only mean one thing....the properties are priced competitively in relation to supply and to their competition, and enough people are finding a way to afford them. The term "overpriced" is greatly overused, in my opinion. The stark reality is that buyers are the only ones who have the power to influence prices, and as soon as they find reasons not to buy, prices will fall. So.....what are some reasons people in this country might suddenly stop wanting to buy homes? Maybe that's what the bubble-soothsayers should be discussing? Just a suggestion. And yes, I know what's coming next....someone will say higher interest rates will stop the train. History hasn't proven that to be true in the past, for very long, so I say the train keeps running. As long as enough people make enough money to buy the apparently limited number of homes available in certain areas, I personally wouldn't bet any money on a big drop in price.