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

To: Think4Yourself who wrote (168732)	12/3/2008 3:20:31 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

home prices will continue to slide because a) loans are still difficult to get on a relative basis, meaning no more zero down, hard look taken at appraisal values, qualifying ficos and incomes, and b) the majority of sales are foreclosures and short sales many of which are speculators who expect to flip them back onto the market keeping the inventory levels high

To: Think4Yourself who wrote (168732)	12/3/2008 8:49:16 PM
From: Lazarus	Read Replies (2) \| Respond to of 306849

what exactly are you saying? if you save 2% in interest on a 250k home and that home is worth 10% less than what you paid for it at the end of 30 years you are still a HUGE winner. a 2% reduction in interest rate should save you over a 100k during the life the loan. use 5% and 7% and see for yourself: the savings in interest is approx 115k. do you really think that the home is going to be worth 10% less in 30 years? NOT LIKELY! By that time its more likely we have a new currency; after the present currency is worth 1/10th of what it is today (and the home is valued at 10X250k ). What I am saying is after the deflationary cycle has run its course, its quite possible we have a cycle of hyper-inflation, then total collapse. time will tell