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

To: GraceZ who wrote (42521)	10/3/2005 2:28:36 PM
From: John Vosilla	Respond to of 306849

"I had a hard time seeing how much people would use the RE market to avoid the stock market in general. In retrospect it makes sense that people would flee out of stocks into bonds which would make leveraged real assets like RE rise. It was hard to see in 2001." I too fail to see the correlation. Now perhaps with institutional money in commercial I can buy that rotation of fund money into REIT's. So much wealth has been created due to the boom in construction and skyrocketing values. Given the easy financing conditions and perceived safety of RE by all doing well in the RE trades and professions the excess new equity had to flow somewhere. Well guess what it didn't go into the bank account at 1% or to the Wall Street scumbags..