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: Mike Johnston who wrote (25372)	11/23/2004 10:38:15 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

In the long run overinflated housing is truly a big negative for a local economy. In addition to what you said it hurts the ability for businesses to compete, make profits and attract workers. It also discourages many younger and potential first time homebuyers from coming into or staying in the area many of which would make up the labor force. A market dependent on housing, construction and related businesses is destined to fail as housing has historically been just a benefactor of wealth and not the main driver of that wealth creation. A twist to current conditions is it seems record foreclosure rates are prevalent in markets not associated with the bubble in markets like Dallas and Denver. It seems using the home as an ATM to fund living beyond a family's means in appreciating bubble markets has worked so far. Also in the current environment we've had a flat to down stock market for 5 years yet the super rich seem to be doing even better than ever. I would have thought the rapid rise in housing prices at the high end and the Bush tax cuts would not have made up that difference.