Residential real estate is generally valued by comparable neighborhood sales. When a property sells for a new high price, it doesn’t just affect the value of that property, it impacts the value on all similar properties within a mile of the new sale. During the housing bubble, neighbors cheered each new higher comp because it added to their (illusory) net worth. With unrestricted access to equity with no-doc loans and 100% LTV HELOCs, everyone near a new high comp was basically given free money. The late arrivals all eagerly waited a greater fool to come along and buy at an...
Comment 1-1 of 1 Last »
The home equity wealth was no illusion unless my bank statements are fake. All u had to do was click the sell button and rent.
Watch comments by email
please recommend patrick.net to your friends