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

To: Tradelite who wrote (84779)	8/12/2007 6:41:30 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

You're right. If only lenders listened to local agents, home prices in Los Angeles would be declining far faster. In due course, the lenders will have to listen as the homes will remain unsold. During the last property bubble in Los Angeles, prices reached a peak in October 1989 and began declining first in December 1989, picking up speed in Spring of 1990. But lenders did not capitulate until 1993. Finally driving prices down to their lows over the next 18 months. Homes offered with generously low prices, warranties, and below market financing would sit unsold for six to nine months before finding a buyer. We will see the same situation again. Today being August 1990, I don't expect to see appropriate low pricing until 2010. It will be a good time to buy .