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    • House Prices Falling - And Worries Rising [view article]
      So basically all your indexes and charts lead you to the conclusion that if home prices continue to fall, more people will find themselves motivated (or forced) to default, which will in turn create more downward price pressure - resulting an economic death spiral? Problem with that theory is (and I am sure there is an index or chart for this somewhere), eventually real estate will reach the price point in which it becomes affordable as a home and/or cost effective as an investment vehicle. At this point - it will of course stimulate demand, which will in turn reduce supply. Ultimately...drum roll please... resulting in higher prices. As a finite commodity, land has no choice but to trend higher OVER TIME. If you doubt me - just take a look at oil now that "peak oil" claims have been tossed about.

      I am curious if your charts take into account that it is ultimately just the human dynamic that disturbs the orderly upward progression? Can they quantify greed?

      The bottom is known for those who care to take a look at the historical value of real estate in relation to the earnings potential of its consumers and the premium placed upon its potential scarcity.


      Feb 29 12:33 AM
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