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

To: David Jones who wrote (25397)	11/24/2004 1:35:24 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

Most real estate bubbles are heavily localized to urban areas where factory home builders can't turn out endless amounts of new homes. It helps add to the logic of the bubble, scarcity and all that. But it doesn't prevent real estate prices from collapsing back to the local GDP trend-line. So yes, nations like Australia and England where a much higher percentage of the population live in urbanized areas, the nationwide appreciation average will be much higher. When comparing home appreciation between comparable neighborhoods in Sydney and Los Angeles, however, the level of appreciation is nearly identical. The real estate bubble has a curiously uniform nature around the world. Occasionally there have been historical real estate bubbles which focused on Florida swamp-land, or empty Los Angeles desert. If you can whip up an enthusiasm for a bubble in those land types, then you really have a bubble which is historic and will never be forgotten. .