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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (22998)	4/18/2005 9:24:45 PM
From: sea_urchin	Respond to of 81496

Darleen > an enormous down payment from a kid I know and love who has saved his butt off and is looking at period that to me seems to be very close to the wrong time. I know exactly how you feel and, in fact, I feel the same way. To me, it's logical that if the prices of houses have risen more than their worth in terms of rental, then to rent is surely the right thing to do. At least until the prices stabilize. Unfortunately, to do this requires a long-term perspective on life and also patience, attributes which young people don't have. Andy was lucky. She bought (with daddy's help) a very nice 3-bedroom, 3-reception room, double storey (+/- 2,500 sq ft) with servant's quarters, garage, car port, a fair sized pool, opposite a golf course and very close to where her parents live, before the prices went up. But don't think she's satisfied. Already she tells me the house is too small!

To: The Wharf who wrote (22998)	4/20/2005 8:05:29 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81496

Darleen > I hope to heck that prices start to drop here and numerous houses come on the market According the the Economist, you may see your wish fulfilled. economist.com >>The increasing riskiness of mortgages is not the only sign that America is experiencing a housing bubble. The ratio of house prices to rents is well above its historical average, as is the ratio of prices to median incomes. And people seem increasingly to be basing their house-buying decisions on the notion that the large capital returns of the past few years—house prices in America are up by 65% since 1997—will continue indefinitely. As with a stockmarket bubble, if this confidence is shaken, prices could begin to fall rapidly. But how far will the market really fall? Prices have already begun to soften in places like London and New York, particularly at the high end, but it is possible that in most places price increases could simply moderate, giving incomes and rents time to catch up. An IMF study on asset bubbles estimates that 40% of housing booms are followed by housing busts, which last for an average of four years and see an average decline of roughly 30% in home values. But given how many homebuyers in booming markets seem to be basing their purchasing decisions on expectations of outsized returns—a recent survey of buyers in Los Angeles indicated that they expected their homes to increase in value by a whopping 22% a year over the next decade—nasty downturns in at least some markets seem likely.<<