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


To: John Vosilla who wrote (42572)10/4/2005 11:45:30 AM
From: gpowellRead Replies (1) | Respond to of 306849
 
I wonder if steep negative cash flows would be a big driver to walk away in just a flat to slightly declining market?

Well, I think that the fact that housing has been in a 50-year bull market has conditioned most folks to assume that if they can just ride out the downturn they’ll be ok. However, I don’t think demographics favor a continuing bull market for rental property. I think we may well see a continuing divergence between rents and house prices, with house price stagnating and rents declining, until the baby boom generation leaves the planet.