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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Grandk who wrote (13711)	5/12/2004 2:07:55 PM
From: benwood	Read Replies (2) \| Respond to of 110194

When the NAZ hit 3000, there were more buyers than ever before. Buyers were sloshing around the trading rooms at NAZ 4000. I think the RE boom is at the NAZ 4500 stage right now. My ex-wife called this AM, says she & her sister want to sell their house on Queen Anne hill in Seattle, for 580k (appraised at 180k in 1990). Her rational is to get out while the gettin' is good. If I owned a spare home, I would put it on the market last week. Yes, buyers know that it's their last chance to get on board as the train of perpetually rising homevalues leaves the station, methinks... just like January of 2000 in the Internuts.

To: Grandk who wrote (13711)	5/12/2004 2:09:44 PM
From: ItsAllCyclical	Read Replies (2) \| Respond to of 110194

Whenever you have a change in trend it's usually the marginal rate of increase/decrease that determines tight markets. It's not that 7% interest rates will cause people to stop buying houses, but it'll take some buyers out of the market, home prices don't go up as fast and the whole thing feeds on itself. I think it'll take far less hikes than most people expect for the housing sector to be feeling major pain. As little as 6.5% to 7% 30 year fix rate will get it started imho.