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

To: Les H who wrote (288019)	10/31/2010 7:58:46 PM
From: Les H	Read Replies (1) \| Respond to of 306849

Extending The Bush Tax Cuts For Ever : Fiscal Insanity andrewsullivan.theatlantic.com

To: Les H who wrote (288019)	10/31/2010 8:59:23 PM
From: Valuepro	Read Replies (1) \| Respond to of 306849

So you are saying that buyers are not influenced by rising prices? But you are correct on part of the equation. The availability of credit alone drives demand, and pushes up prices/costs on everything. There was a time in this country when, if one could find a real estate lender, down payments on homes were in the area of 50 percent. In those days, houses did not increase in price, they were difficult to sell, and new homes usually declined in value after being sold. My grandmother used to say of those days, "First you own the house, and then the house owns you." I recall going to a conference in Monterey, CA back in 70's where an economist for Bank of America pointed out that it didn't (then) matter what kind of a job a person had, as long as they were employed, there was a home in California that was affordable to them. He mentioned "dishwasher" specifically. He also noted that as new loan-types and lesser down payments were coming to credit markets, we would be moving away from that period in our history. He was certainly correct.