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

To: Amy J who wrote (30811)	5/6/2005 9:44:39 AM
From: The Wharf	Read Replies (1) \| Respond to of 306849

It's loose lending standards, not income. >> Stats and the housing affordability index make loans look impossible. We could have a very low income group that are dropping the average income figures way too low. Or as you have stated creative financing allows people without the proper credit rating to get a loan. This is way to scary as it amounts to a very large Enron. Equity loans are probably too high in number and that could harm the Mom and Dad who trying to aid children so the back up could very well of backed itself up against a wall. To me it is starting to look like a closed circle of home owners, very few first time buyers and a rotation within the group who were lucky enough to buy a house five years ago. Add to this tax and cap gains savings and it keeps going up. It has to pop at some point and it could be it begins in the lowest priced houses and lack of first time buyers.