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

To: orkrious who wrote (28096)	3/12/2005 1:34:48 PM
From: MoneyPenny	Read Replies (1) \| Respond to of 306849

I would think that Birmingham, MI, my old home town, would qualify for Bubble status. Mad pricing there as people want in the school system. Money Penny

To: orkrious who wrote (28096)	3/12/2005 3:02:57 PM
From: bentway	Read Replies (3) \| Respond to of 306849

I don't agree Ork. I think RE may be affected by tightened lending standards in the non-bubble areas, but the driver of people buying residential RE in a non-bubble area is acutal demand for housing. As has been stated previously, maybe 25 to 30 percent of demand in the bubble areas is from specualtors. When these guys walk, they dump the houses on the banks, which sell them at a discount - driving prices down and increasing inventory. This won't be happening in the non-bubble areas.