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

To: John McCarthy who wrote (94487)	2/21/2009 12:33:16 PM
From: JBTFD	Read Replies (1) \| Respond to of 116555

I think to get a more accurate picture of where valuation should be you would have to also take in to consideration interest rates and their effect on debt service. If you look at a graph from 1980s to now and ignore that part of the picture you will get an inaccurate impression.

To: John McCarthy who wrote (94487)	2/21/2009 2:38:18 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 116555

California which is ground zero for foreclosures has rents that have increased, and in some areas like SF bay area rents are going through the roof. Many counties in CA have rent control so for rents to rise statewide 20% in 4 years means some areas saw 40% increases. So, California has rents that HAVE risen dramatically, that leaves other areas where Abelson's point my be correct but not here. Statewide rents going up, but they're flat in Stanislaus County During the past four years, for instance, rents statewide have risen 20 percent to $1,435 per month, but they've increased just 6.7 percent in Modesto to $815. Merced rental rates are even further behind and remain among the lowest in California. They now average $735 per month, only 6.1 percent more than four years ago. modbee.com