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

To: TheStockFairy who wrote (51339)	4/4/2006 11:06:36 AM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

>>>I'm probably buying a TOL house this year,<<< Thanks for sharing your experience. i don't doubt it is the truth. You are probably looking at very localized conditions. The broad picture doesn't look too good. All of the classic ratios are way out of whack. You have to ultimately ask: 1) Can salaries continue to expand at a rate equal to housing prices? Indications are that they have been lagging. 2) Will interest rates remain low? Surely the drop in rates has enabled the rise in house prices. Real rates have been negative for a long time. They are finally starting to adjust upwards agian. That will stop the housing rise. It might not invert it. I believe that low interest rates were financed by Saudi and China. How long will they invest their oil and manufacturing surpluses in the US ten year note if we don't firm the dollar by raising rates?? With what have Americans been financing the higher cost of oil??? I think any salary increases have been going to home purchases. The house ATM has been paying for the increases at the pump.