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

To: Micawber who wrote (46264)	12/29/2005 11:03:21 AM
From: John Vosilla	Respond to of 306849

I think you are both right. Never such a huge discrepancy in prices between the coastal bubble markets and the rest of the country. The story is going to be how this gap shrinks in the future. Shorter term makes you wonder how the economy and our financial institutions would fair with a RE collapse on the coasts given the value of that property might make up 80% plus of the total residential property value nationwide

To: Micawber who wrote (46264)	12/30/2005 8:18:50 AM
From: ChrisJP	Respond to of 306849

Hi Micawber -- during the stock market bubble, not every stock participated. It was mostly a tech rally. In fact, boring stocks like utilities and old industry stocks suffered a little. But it was still a speculative bubble. I bet the market cap of the real estate owned by the 80 million people on the coasts totally dwarfs the real estate owned by the remaining 200 million. So while the article tries to downplay the recent speculative nature of the current real estate market by suggesting its limited to two or 3 relatively small strips of the USA based on area, they are overlooking that there is a disproportionate number of people living in these areas and a disproportionate market cap of the real estate they own. I also bet its on the east and west coasts where most of the real estate "investment" is occurring. And I also include in that places like Las Vegas and Phoenix where properties are being bought by using collateral from inflated properties values in California. Chris