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

To: biometricgngboy who wrote (15650)	12/28/2003 9:29:14 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

"If you can't increase opportunities for first-time home buyers it will be a serious problem, not only for the housing market but the entire economy." maybe they can commute from Death Valley.

To: biometricgngboy who wrote (15650)	12/29/2003 6:00:08 AM
From: Micawber	Read Replies (1) \| Respond to of 306849

Erin Doherty, a doctoral student and substitute teacher, just bought a condo in El Cajon and says the mortgage eats up 80 percent of her take-home pay. She says her new mortgage is double what her rent used to be. Doherty said she is taking on the extra burden with hopes that her condo will appreciate enough in the next few years that she can sell it and pay off her student loans. "It is a dramatic lifestyle change from renting," said Doherty, who has severely curtailed her spending in other areas. Only in markets like this is the lifestyle change dramatic, economists say. The current gap between the average new mortgage and the average rent is $872, the largest in San Diego history, according to a Union-Tribune analysis of San Diego Regional Chamber of Commerce data. From 1970 to 2002, the average gap was a more modest $348. Some economists see the ratio of rents to home prices as a significant warning sign. The demand for real estate will inevitably soften when it becomes dramatically cheaper to rent. These five paragraphs say it all. The "greater fool" theory of investment. It's the 1999 Nasdaq all over again- like buying Cisco at $85 because you knew you could sell it for $95 a few days later. That's before it went to $5.00. It's only a matter of time.