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

To: MoneyPenny who wrote (69996)	1/7/2007 1:08:47 PM
From: KyrosL	Read Replies (1) \| Respond to of 306849

I think Wyatt's argument works even better with 400K homes, which are typical middle class homes on the coasts. And those homes are definitely not bought for cash, and are the main targets of MEWs. It's the broad middle class that will be in trouble, if nominal prices fall. These are exactly the people that feed the consumer boom that sustains the economy.

To: MoneyPenny who wrote (69996)	1/7/2007 3:18:02 PM
From: MulhollandDrive	Respond to of 306849

Most people buying million dollar homes pay cash or carry a small mortgage. mp, i'm not so sure that is true anymore... in the past, sure....but after the recent years double digit yoy RE appreciation, i think there are probably a lot more people taking out mortgages on million dollar properties today (especially in CA, where it is truly amazing at how little one gets for 1M in certain areas) i pulled this from the quicken home loan site quickenloans.com Jumbo Loans, combined with historically low mortgage rates, can bring greater flexibility for some home buyers to purchase the house they want and make the payment they want. With interest rates so low, consumer interest in Jumbo Loans is very high.

To: MoneyPenny who wrote (69996)	1/7/2007 4:01:55 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 306849

i was just using 1m as a round number that a simple person might understand. but just as a dog looks at your finger instead of the thing you are pointing at when you point at something, Tradelite thinks i'm talking about million-dollar homes when i'm just using an arbitrary number for illustrative purposes. then instead of focusing on what i'm actually discussing, he focuses on the 1m figure. you could make the same point with 500K homes, 100K homes, whatever. but some people are so dumb you have to spell things out very literally for them or they will miss your point. then they miss it anyways.