Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ild who wrote (18967)	3/28/2004 7:56:58 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

This is always what happens in a housing bubble, the supply of homes for sale diminishes. The owners are fearful of selling, unless they're moving out of the area. More importantly, owners sitting on a home with greatly inflated value cannot move up to a better home without a disproportionately large increase in costs. The number of homes for sale will begin to increase once home prices start to decline. The number of homes for sale increases dramatically after the third year of declining home prices. Real estate bubbles in the housing market collapse when you run out of buyers either due to price or a change in sentiment. It's always difficult, perhaps impossible, to pinpoint the top of the bubble. But declining home sales since June of last year are typically what you would experience a year or so before the top. Equally important, home prices have been declining during the last six months. financialsense.com