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

To: Lizzie Tudor who wrote (48861)	2/21/2006 12:13:28 PM
From: GraceZ	Respond to of 306849

I bought a real "bargain" in 1991 and then watched while it turned into an even bigger bargain 3 years later. Things bottomed here in 1995-96 but the last RE downturn was typical in that it was rolling, it didn't hit the whole US at once. It rolled from one location to the next the same way the boom did.

To: Lizzie Tudor who wrote (48861)	2/21/2006 12:18:09 PM
From: Live2Sail	Read Replies (1) \| Respond to of 306849

Lizzie, If I were you, I would not counsel my _employees_ on when to buy a house. There's a narrow margin of victory for you and a large swath of grief. Tell them to rent until they have a cushion with which they feel comfortable.

To: Lizzie Tudor who wrote (48861)	2/21/2006 12:32:58 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

In Los Angeles a huge wave of foreclosures were offered by banks with record low prices and generous terms during 1994 and 1995. They sold very, very slowly and the market started to show signs of life on the upside during 1996, once most of the foreclosures were sold off. During earlier years 1990 to 1993, home prices slowly declined, with most homes seeming offered for just above the market, only to be withdrawn and later re-offered for 10 to 15% less - but still slightly above the then current market price. So I would say that you certainly had far more homes to choose from during 1990 to 1993, but the price point was pushed far lower in 1994 and 1995 by the bank offered foreclosures. The only other homes offered during this period were people being transferred where their employer bought their house and was willing to sell at the going price. .