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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 (59753)	8/11/2006 3:53:44 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

re: 1989 in CA I have heard some say that lending was lax in 1989 but what happened was, prices rose SO HIGH relative to salaries that lax lending standards didn't matter. At a time when many folks were making 50K, tract homes in the expensive areas were going for 550K, and that required a 200K salary, then. That was my recollection. I looked around my office, at recent MBA graduates from MIT, and nobody was even CLOSE to being able to afford a ho hum rancher in 1989. SO it was exhaustion and price exhaustion.