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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Vosilla who wrote (87485)10/10/2007 8:13:02 AM
From: Real Man  Read Replies (3) | Respond to of 110194
 
Never say never. England did the cut, their RE bubble bounced
back, even with a strong pound. The ratio of median home price
to median income is much worse for the Brits than it is here.
Housing is a real asset that simply reflects real inflation,
10% plus. It thus is nothing but a leveraged inflation bet.
Well, it obviously got ahead of inflation in
recent years, to put it mildly, but as material costs triple,
shouldn't the price of new homes go up some? As housing leveled
off in 2005, it is now down 20%-30%, in REAL terms. Low
rates is all that matters. So, if rates stay low or go lower,
housing will bounce back.