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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Broken_Clock who wrote (91142)12/3/2008 6:48:32 PM
From: Sr K  Read Replies (1) | Respond to of 116555
 
>>where prices have fallen back to their historical 3-4x income and 1x rental ratios <<

What rental ratio do you mean?



To: Broken_Clock who wrote (91142)12/3/2008 7:15:52 PM
From: stockfiend  Read Replies (1) | Respond to of 116555
 
Fair points. Consider though that rental demand in areas hit hard by foreclosures has increased significantly and rents have risen or at least firmed. Most of this marginal rental demand is probably from people whose credit is now shot due to foreclosure so they wont be buying anytime soon. However for investors these houses are now cash-flow positive at these prices and rates.