SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: jimmg who wrote (71365)2/3/2007 4:25:31 PM
From: ChanceIsRespond to of 306849
 
>>>So yes, equity as a % of market value has declined but that is slightly misleading.<<<

Very good. Fair enough.

>>>Over 5 years, real estate equity has increased 50% ($3.7 trillion)<<<

I certainly don't disagree with your conclusion here, given your initial data. When housing prices increase, and debt remains constant, then all of the increase goes to the owner's equity. So as a back-of-the-envelope check, one asks, have housing prices on average gone up 50% over the last five years??? Answer could be yes.

Again it depends on how you define average.