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

To: Tradelite who wrote (68436)	12/10/2006 11:36:31 AM
From: Dan3	Read Replies (1) \| Respond to of 306849

RE: people decide to rent or buy based on what they NEED at the time You're mistaken, at least in regards to a percentage of buyers large enough to have overwhelmed the market in recent years. These people decide to buy based on what someone's willing to lend them, regardless of their ability to repay or their "need." A lot of people "needed" to make money by buying "pre-construction" condos and home last year so they could flip them for promised huger profits. Now those contracts are coming up for closing and the buyers cannot afford to purchase the contracted homes nor pay of the borrowed down payments. I "need" a helicopter to cut my daily commute time, and could probably find someone to lend me the money to lease one (and its maintenance, etc.) for a while, but I'd be bankrupt and homeless on the curb in less than a year if I were naive enough to satisfy my "needs." Unfortunately, a lot of recent home buyers have become the victims of unscrupulous salespeople who have sold them into a lifetime of indentured servitude under the recently changed credit laws.