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

To: pheilman_ who wrote (205403)	5/31/2009 2:04:44 AM
From: Steve_C	Read Replies (2) \| Respond to of 306849

67% is an approximation of 2/3rds? Why that's brilliant! Since I made the approximation I'd have to say you're right. I guess you don't recognize that your marginal analysis is simply a circular argument. You're assuming those locked into their homes represent homes that would not find buyers except at a much lower price. Thus, home prices will fall when those come onto market, which will in turn cause more homes to come onto the market. Very similar to an argument that inflation causes inflation. Hey! Sometimes it does as in a hyperinflation. My question for you is, have you approximated a demand curve for housing in California? Or are you simply making a speculative blow-off type argument and calling it marginal analysis? re example: 2 million in equity and she can't afford the tax? Not likely and certainly not representative of most lock-ins. Try again.