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

To: John Vosilla who wrote (30275)	4/8/2005 4:17:17 PM
From: regli	Respond to of 110194

"As for meeting in the middle the almost new 2500 sf two story in an average burb in Houston might run $115-125k while the same house in Las Vegas or Orlando is easily triple that now. All have tons of land, similar income levels and high population growth rates." Exactly. And in addition there is increased supply. Now isn't it an interesting question why Houston has not recovered. The last big building boom there was in the early eighties, a long, long time ago. If I remember correctly, the house in Houston that was recently posted here for about $115,000 would have cost about the same in the early 80s but in much more expensive dollars. I also think that we cannot look at housing in isolation. Credit is everywhere and once the house ATM goes, all the other vulnerabilities will come to the fore reducing purchasing power even further. At the same time credit will be tightened as losses increase and this in turn will again diminish the pool of buyers. I don't think it will be pretty.