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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (62663)	4/24/2005 6:42:37 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 74559

I can assure you that the following statement is completely false. . . . Research shows that planning regulations push housing prices up as would be expected (no free lunches). A.) Development fees, and other costs imposed by land use regulations, reduce the price land owners receive when they sell their land. This is well documented. B.) Home prices are determined by income. Interest rates, the maximum leverage allowed, and tax policy, determine effective income so also influence price. The Real Estate Research Council, a prestigious group among appraisers whose membership includes every large bank, has maintained a same-home price index of Los Angeles County homes since 1895. In light of points A and B above, it is not surprising to see a nearly 100% correlation between this home price index and LA County income over the long term. .