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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (45585)	2/3/1999 12:54:00 PM
From: Bonnie Bear	Read Replies (2) \| Respond to of 132070

yup...here's the psychology....at the beginnings of booms or end of recessions, people buy three-bedroom houses with elementary schools and stores nearby. When house prices have soared, new buyers settle for condos, which drives up the price of condos until they sell for the same price as homes. At this point -the condo-buyers move laterally to houses and they rent their old condos, -the three-bedroomers move up a little to five-bedroomers, -and the five-bedroomers move to vacation houses. Pretty soon the market starts to take a nosedive..the condos take the biggest hit, followed by the five-bedroom houses... the three-bedroom houses go nowhere and the owners are stuck with their old condos they can't rent anymore. They take a loss to dump their condo at firesale price... the five-bedroomers want out from under their huge mortgage and tax bill, so they too take a huge loss or foreclosure. And the vacation houses don't go on sale, but inventory increases. So the savvy speculator can time their housing moves with regional boom/bust cycles and economic cycles and do just as well on real estate as on the stock market. Nifty, yes?