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

To: Tradelite who wrote (18612)	3/15/2004 3:34:58 PM
From: Elroy Jetson	Respond to of 306849

Just imagine a real estate decline, like that experienced by Japan, where the majority of home owners have mortgages larger than the value of their homes. home.pacbell.net Extremely low inventories of homes for sale in California traditionally signals the top of the market. The largest inventory of homes for sale occurs after home prices have been declining for several years.

To: Tradelite who wrote (18612)	3/16/2004 12:56:45 AM
From: JF Quinnelly	Respond to of 306849

If they were, there would be a ton of them up for sale at every given moment, and inventory wouldn't be classified as "low". I'm seeing people in north OC draw equity from their first home to fund the down on the second. These "rentals" are helping to keep the inventory low. And from what I see these homes are hard to rent, people are looking to buy. The fun will begin when both homes drop in price and the strategy of daisy chaining begins to pinch. But who knows what year that will happen...