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

To: Tradelite who wrote (67423)	11/28/2006 5:05:49 PM
From: J. P.	Read Replies (1) \| Respond to of 306849

The issue is affordability. No money down ARMS are fun as long as house prices are going up fast and interest rates are not.

To: Tradelite who wrote (67423)	11/28/2006 5:50:55 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

How much of that crowd just relocated? Regarding the other crowds, it's more a result of the housing boom and the economy. I vividly remember times of empty stores and mall parking lots. That wasn't because large portions of the population suddenly kicked the bucket What's missing is how many of those groups mentioned can readily pick up a median priced 221k house, let alone the drastically overpriced. Home demand was not driven by ordinary or sustainable forces, but primarily by frenzied speculation. I think I had read at some point about 1/3 of homes bought were by googly-eyed flippers and investors. There's now an obvious glut of homes on the market that will continue to force prices down until some supply/demand parity is restored.