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


To: Elroy Jetson who wrote (57849)7/17/2006 10:46:46 AM
From: John VosillaRead Replies (1) | Respond to of 306849
 
Most will look back in about five years and say "..What the hell were we thinking". Not any different from NASDAQ early 2000 or gold in 1980. Property valuations go back at least to what historical norms based on cap rates, GRM's, rents and incomes were relative to interest rates.



To: Elroy Jetson who wrote (57849)7/17/2006 11:12:36 AM
From: MetacometRead Replies (2) | Respond to of 306849
 
Long-term, increases in real estate valuation always match increases in income.

Guess I would need some data to support this.

Intuitively it sounds far fetched.

Not the least because we have seen record appreciation in real estate valuations while incomes have been static to declining in the last 6 years or so....