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

To: KyrosL who wrote (59197)	8/5/2006 8:50:56 PM
From: Don Earl	Read Replies (1) \| Respond to of 306849

RE: "When a housing bubble bursts the difference between sale prices and assessed values starts narrowing." Interesting theory. Why wouldn't it simply mean the market is starting to level off, and that assessed values are catching up with fair market value? If, as you claimed in a previous post, assessed values are two years behind the curve in your area, wouldn't that be exactly what you'd expect to see? How big was the difference around 2000 after an extended period of tame inflation and stable material costs? If memory serves me correctly, at least in my area, assessed value and market price were nearly identical at the time. Golly! I guess that means the bubble burst 6 years ago and no one noticed!