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


To: John Chen who wrote (181193)2/2/2009 1:39:27 PM
From: Jim McMannisRespond to of 306849
 
Who wants expensive homes?

californiahousingforecast.com

A healthy market has a 3-5 month supply of homes. People buy an entry level home, then a bigger home, and so on. Since most entry level homes sold are vacant, there is no move-up buyer going to the next level up.

During housing booms, months supply is at 1 month or less. We clearly see a market in distress.

This chart says it all: demand for homes is correlated to prices.