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

To: GraceZ who wrote (151312)	9/27/2008 5:37:14 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

'We had what most describe as monetary deflation during the Great Depression because one third of the money supply went poof in less than a year and that had the effect that the GDP contracted by the same amount.' Nominal growth in GDP and expansion of broad MZM still happening. When both contract for a sustained period we can safely say deflation is in the air<g>. You are probably aware of localized crashed in RE prices even in 1973-74 and 1980-81. NYC was bankrupt and they couldn't give coops away in Manhattan in 1975 even though the 1970's were the period of great inflation the past century. Condos in FL crashed as well before rebounding nicely. BAck then oversupply, much higher interest rates and high unemployment were the main culprits. This time is is a bit different with oversupply, excess speculation, easy credit and overvaluations.. Florida still way to tied to housing and tourism and now home values in much of our state have dropped way below comparable areas in the country due to the crash. Cape Coral almost new 3/2/2's going in the $60k's which is less than what they were 10 years ago and down roughly 70% from 2005..