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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (267814)	1/10/2006 2:11:58 PM
From: tejek	Respond to of 1578192

Ted, I just think the study makes the incorrect assumption that only people living in a given area will buy the homes there. In the case of Santa Ana, obviously most of the residents there can't afford any of the new homes being built there, but there are plenty of people all over Orange County who can. Classic case of gentrification, which the study incorrectly assumes is an "overvalued" real estate market. The study is saying that housing in all of the OC is overvalued by 44%; not just in Santa Ana. But these studies should not be taken literally but rather as a guide. They are guessestimates based on certain housing parameters like income, building costs and interest rates. The use and blending of those parameters vary from study to study depending on who is commissioning the study and their intent. Ultimately, its 'the market' that decides if housing is overvalued in the OC, not statistics.....which runs to your point......if enough people can afford to keep paying OC's high prices and they WANT to keep paying OC's high prices, then the market is not overvalued. However, real estate professionals believe that buyers are pretty much tapped or priced out at this point in certain markets; hence, the plethora of overvalued housing studies hitting the news. ted