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

To: Jim McMannis who wrote (123718)	5/17/2008 6:27:29 PM
From: John Chen	Respond to of 306849

"my realtor told me prices never fall in California! ". Is the "math" playing trick with the people ? "average price is plunging" ? That's certain good news for the buyers, so that have money left to spend. But how is the 'average' calculated. To make a case simple: last year 2 sales : 1 million and 100K. this year 2 sales : 300K, 400K. what is the 'average' ? Most likely the average Joe/Jane spend 3x,4x on a 'averag house', while the speculative 'highend/subprime' STOPPED. At least Joe/Jane didn't have to go thru subprime to get the speculator's special price. So it's still a positive trend, though the 'plunging' effect is not obvious.