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

To: John Vosilla who wrote (59511)	8/9/2006 2:18:34 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

That's nonsense. In 1989 anyone who was breathing could get a home loan. Yet by December 1989 home prices started to slip and by April of 1990 it was a full-out rout. Monetary policy was really tight from 1979 to 1982. Yet, this barely rippled the roaring housing price appreciation. After 1982 monetary policy just got easier and easier. The TEFRA tax law change in 1982 did leave the commercial property market reeling, but this didn't apply to homes and didn't affect home prices. A seven year delayed reaction makes for a pretty implausible story.