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

To: Tradelite who wrote (27965)	3/10/2005 11:22:32 AM
From: John Vosilla	Respond to of 306849

But because this outcome DOES vary from case to case, why are some folks tilting at windmills and proclaiming today's real estate and lending environment as a crash waiting to happen? Puzzles me.......sorry, but I'm slow to catch on. You are a perfect example of our new ownership society on steroids in the coastal bubble markets. The airwaves are filled day and night now with industry pimps projecting an air of invincibility. I know it is no big deal for single family in these bubble markets to pencil out to 1% to 2% cap rates, median home prices at 7-10 times annual incomes and for the latest pool of new age buyers to use ARMS's with very little down. For anyone to think most of these new slaves to their mortgages commuting 3-4 hours a day now will get out of this unscathed is preposterous and only puts additional strain on the family. This shows how desperate many have become in the only perceived way for them to get ahead these days with few even thinking in the old school ways of actually staying in a home long term anymore. Our incredible twin deficits cannot keep these interest rates at 50 year lows forever nor can such loose underwriting standards continue. Meanwhile in many depressed midwestern markets the locals totally despise real estate but that is where the opportunity is this next cycle.