We are talking about continental UNITED STATES OF AMERICA. What happens elsewhere I donot know. Also it would nice if you didn't make personal attacks. It serves no purpose. I can attack you the same and much much worse.
You have been calling everyone on these forums and idiot or similar. My observation is that they are all intelectually in a plane several levels above yours and have the benefit of direct exerience to draw on.
it can take more than a few years to recover... check out the chart of HK property prices... http://www.centadata.com/cci/cci_e.htm
Prices in California dropped 30%-40% in the early 90's Prices in Miami / Fort Lauderdale are down 30-35% right now from the peak in late 2005
Prior to 2000, I had NEVER EVER SEEN within the last 70 years the UNPRECEDENTED and ABSURD rise in US real estate that took place between 2001-2005. It follows the DECLINE after the bubble pops would very likely also be UNPRECEDENTED in magnitude. Econs 101: A subset of the economy (real estate) cannot indefinitely sustain a growth rate that is far greater than the growth rate of the overall economy. At some point it would revert to back to the overall growth rate. Is the economy going to catch up with real estate, or is real estate going down? Take a guess.
Hey dimwit, Those two statements and NOT contradictory. While its true real estate retail values donot decline 25% in the normal market place, foreclosure buying still prevails at prices ranging from 30 cents to 80 cents on the dollar. This is real estate buying wholesale away from the normal real estate market in good times or bad times. Do some reading how foreclosures are bought.. lots of courses out there..you need lots more knowledge about real estate to upset my cart.. sonny boy.
Your statement is not true. There have been lots of real estate cycles and ups an downs where lots of growth took place. Real estate basically is a cyclical industry , it goes up and come down. Realtors donot even know it.
EXCELLENT COMMENTARY ALL ................................................................................................ STEVE IB wrote.... it can take more than a few years to recover... check out the chart of HK property prices... http://www.centadata.com/cci/cci_e.htm ................................................................................................... All in all ....one could look at house prices as just another stock... Prices do not know their labels... ................................................................................................ What is particularly interesting in this case is the sensitivity to banks of current average portfolio prices.....and the amount of recovery time that the currently adopted Bill Seidman S&L type strategy implies...only to be exaggerated this time around by the nouveau derivative instruments... ............................................................................................... Normalcy....for an average retiree to generate sufficient interest to live on given average level savings...could only be supported by artificial inflationary impositions...and in this case...bank solvencies as well... ................................................................................................ If artificial impostions are not exaggerated...then a Japan style environment is the likely outcome... ............................................................................................. Deflation is the bigger risk than inflation in terms of bank solvencies in legal terms.... ............................................................................................ Normalcy in regards to returns on savings seems to be a far away possibility....It seems as though a Japan style strategy is being employed....