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

To: organicgerry who wrote (46371)	12/30/2005 1:15:39 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 306849

Let me say this. Parts of FL will be the last to correct should there be a downturn. On the other hand you'll be complaining about the loss of quality life in the near future.

To: organicgerry who wrote (46371)	12/31/2005 4:38:26 PM
From: Lizzie Tudor	Respond to of 306849

btw this logic is a bit flawed 2. Even if prices drop 30% (which seems like the maximum downdraft to me in the absence of a serious recession or depression), that will only erase the gains from the last year or so, no big deal. 2005 - 300K house goes up 30.x% to 400K 2006 - 400K house declines 30% = $280K I went through a decline about like this in CA in the early 90s. At first the agents said what you said, no big deal it will just wipe out the recent gains. But it didn't really work that way, it was more like a stock buyer on margin in a decline. A lot of people were wiped out. And the 30% decline masked the real decline in many properties which was much higher, but people couldn't unload so they didn't show up in the stats. I agree with your post, just pointing this out.