"DSK" wrote in message
. ..

Clue: it happens *everywhere* from time to time. Supply and demand are in
a constant state of seeking equilibrium.

Viewed pedantically, yes--that's true. From a more temporal viewpoint, the
hot real estate markets are where the term is being bandied about most
frequently. I doubt seriously if the supply and demand of land in Bugsquat,
NC, is of much concern to anyone beyond the locals.


... My brother's home in SF, which he purchased in '74 for $58K,
appreciated to over $400K, and then readjusted in a slump to around $275K
back in the 90s. Now it is over $850K and still rising, but he strongly
expects a readjustment somewhere down the road. So the market gurus
speak over "overvaluation."


And people who have strong reasons to sell their homes during these
periods of "correction" get hammered.

Especially those banks who've lent money on interest-only, nothing down
loans. But ultimately they tend to make out okay. They just hold the
repo'd property until the next RE boom takes the prices higher.


It's not a crash if it only happens to the other guy, right?

... Ultimately, however, the trend is always up over the long haul.

Uh-huh.

Did the Tooth Fairy tell you so?

Did it ever occur to you that prices seek a level relative to inflation?

Before sticking your thumbs behind your suspenders and looking smug, you
might wish to check out the history of RE values in San Francisco, for
example. The net price trend there has outstripped inflation manifold for
the past quarter century and shows no signs of slowing. Same in the other
two markets I mentioned. No one is talking generalities here, so save the
homespun economics lesson for your neighborhood kids. Bore them, not us.

Did it ever occur to you that some goods & services experience a permanent
decline in demand?

You mean like land values in the impoverished regions of NC, which encompass
about 80% of the state?

If you think that long term trends are *always* up, immutably &
indubitably, then I have a great investment for you in Acme Buggy Whip Co
stock.

Get with the program, Doug. Who's talking about stock? And I'm not talking
about RE in Buggy Whip, NC, either. I'm talking about San Francisco, Miami,
and Chicago, like I stated in the first place when you rudely had to open
mouth-insert foot and proclaim, while beating your chest as you are wont to
do regularly, that the phenomenon I was describing happened in ****kick, NC,
too. But as long as you raised the point, can you show me that the Dow
Jones Industrials average is lower now than, say 20 years ago? Or 50 years.
How about real estate in general--can you show me any state in the country
where RE values are lower than they were 20 or 50 years ago? You really
should give your statements some thought before citing something your Econ
101 professor told you years ago.

... That's why interest-only loans are dispensed like candy in such
areas these days.


Great idea: literally gambling with your home. Poker is for wimps!

Gee this thread has come a long way. Started out at the ports & worked
it's way inland, I guess.

That surprises you? Are you The Thread Nazi, the one who demands that
threads remain on track in Usenet?

Max