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

To: Wharf Rat who wrote (43872)	10/30/2005 6:00:53 PM
From: Whitebeard	Read Replies (3) \| Respond to of 306849

Maybe it was cheaper in your area in the 70's than LA I can still remember the #'s. They're burned in my head. $220 on the first, 78.05 on the second. It was a long reach when I got into it, just starting a family. The 1943 house was in bad shape. the roof leaked. I patched it myself on the weekend with some buddies. Property taxes went from 485 to 1600 in 5, 6 years, when Prop. 13 froze it. The rise in property taxes killed people. inflation was already eating into you on every level by '76, '77. Work was hard to find, pay increases harder. If your gross was 700 a month you would have found it hard to own in LA in '75. You could have done it as a renter. Good houses could be had for 250, 300 a month in the SF Vallety. You gotta remember the times. In '73 you could buy gas for 35, 40 cents a gallon. Then the gas crisis hit. Along with out of control increases in the property taxes, food, etc. Accelerating inflation was everywhere The mood and the reality just got more negative. The 70's were lean times for the middle-class in LA. Mortgages continued to rise, hit 17, 18% in the early eighties. It wasn't that people didn't want to buy houses. They couldn't qualify. Owning a house was beyond you because of the interest rates. Since nobody could buy, nobody could sell without creative financing. Housing died. Realtors left the business. Nobody talked about the housing market for next 15 years. It was all the stock market.

To: Wharf Rat who wrote (43872)	10/31/2005 3:41:22 AM
From: freechina	Respond to of 306849

Mish say mortgage payments must come down, or wages go up - people say we have huge corporate profits - but wages not matching - BS says me - wages in china india are GOING WAY UP - there is wage inflation with mass numbers of peoples in this world - just not the wages where some of the physical addresses of these corporate HQ's are. So using Mish's recursive arguement - wages must go up to support prices - and those people where the wages going up must be buying the stuff (houses) - well I guess we gonna have to see what percentage of increasing wage china india boy buying california bubble real estate - I think they not flying over in droves to california buying up property - AH but you say - free china - yes they are - they take thier savings from new high wages in AGGREGATE - and through CCP banks buy up mortgage backed securities that keep housing prices inflated in california - so as long as you see the forest and not just the tree - it easy to see that yes indeed wages are GOING UP and those that have the higher wages going up in AGGREGATE are supporting prices if you look at global picture and not just small california market. Am I wrong? Now as has been posted - the moment AGGREGATE global workers higher wages no longer diverted to global housing and mortgage backed securities and such - then prices must fall or if global aggregate wages go down prices fall or if global aggregate wages keep going up - housing go up - maybe a mix of it all. So far though, it seems right that aggregate wages of workers in chindia going up - so global housing bubble can last how much longer? Go back to depression - as long as we could integrate and trade more - global wages and prices could go up right? But when the tower of babel got dispersed and trade protection went up and war - wages and prices in aggregate globally go down. Fundie muslims and tree huggers want this it seems - less globalisation - Bhagwati not like these people - he a sweet guy.