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

To: Chas. who wrote (156032)	10/10/2008 1:36:14 PM
From: J. P.	Respond to of 306849

I think that is the direction we are headed for sure, no doubter. Real Estate prices rose based on cooked books of Fannie, Freddie, Lehman, AIG, and the rest of them. These companies got repriced, the stock market got repriced, the derivatatives got unpriced. Why shouldn't the homes themselves now get repriced to reflect reality? I realize these prices will be sticker because the folks owning them don't want to lower the price. It will have to be foisted upon them when they can't make their payments, or have to move and lower the price to market value. Which is why houses don't sell today, because they are priced too high, so there is no liquid market. Didn't Real Estate appreciate at like 1.25% per year before (before EZ credit)? That used to be the general rule. At one point during this, people would buy a house, hold it for a year, and flip it for 100K or more profit, and move up a house. Back