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

To: GraceZ who wrote (43763)	10/28/2005 3:06:13 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

this thread backwards to it's beginning because this is the myth I've already disproven by showing that CA has a higher turnover ratio wrong. you are equating turnover rate with supply being withheld and calling it "proof". in the real world we can't just change the names of things and pretend they are the same thing like this. clearly supply is being withheld from the market. there is probably nowhere else in the country where so many people would have to pay so much more in taxes if they sold their current house and bought an equivalent one. that doesn't mean the houses which are not withheld can't turn over. CA has had a structural deficit every year in unit growth in new housing this population growth theory is very popular in Clownifornia and among housing bubble apologists. but unfortunately it is a poor explanation of skyrocketing prices. perhaps among bubble apologists it is quaint to think that people who buy houses generally ought to have some sort of income to pay for them, but LA had more jobs in 2000 than today while houses are twice as expensive. this is all thanks to the bubble with its many contributing factors, among which population growth must be considered a rather small one since the population of people with jobs has not grown at all. the bubble is much easier to explain in terms of credit growth, and increased availability of credit through lowered lending standards. in other words, it is a credit bubble just like every other bubble in history.