Comments on: So Much For That Theory http://www.peridotcapitalist.com/2007/09/so-much-for-that-theory.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sun, 05 Feb 2012 15:45:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://www.peridotcapitalist.com/2007/09/so-much-for-that-theory.html/comment-page-1#comment-680 Anonymous Fri, 21 Sep 2007 16:07:00 +0000 http://www.peridotcapitalist.com/?p=497#comment-680 Excellent article!! You distilled a very complex problem to a single issue! The residential real estate market is based on price. Millions of potential buyers have given up looking for a house because they are prudent enough to realize that there is NO VALUE in placing yourself in the debt of a 30 years mortgage with extremely high property taxes on a house that is priced too high. It would take over 20 years for these existing asking prices to meet the long range trendline of SFR house prices. <br/><br/>Those owners who purchased houses before 1999, in most areas of the country, and who have not been using their houses as an ATM machine, can sell tommorrow and make a large tax free capital gains profit! Trying to sell a small 1950's ranch style house for $800,000 is not going to happen again. If motivated sellers drop their asking prices, houses will sell and stability can return to the Real estate market within a year. Excellent article!! You distilled a very complex problem to a single issue! The residential real estate market is based on price. Millions of potential buyers have given up looking for a house because they are prudent enough to realize that there is NO VALUE in placing yourself in the debt of a 30 years mortgage with extremely high property taxes on a house that is priced too high. It would take over 20 years for these existing asking prices to meet the long range trendline of SFR house prices.

Those owners who purchased houses before 1999, in most areas of the country, and who have not been using their houses as an ATM machine, can sell tommorrow and make a large tax free capital gains profit! Trying to sell a small 1950′s ranch style house for $800,000 is not going to happen again. If motivated sellers drop their asking prices, houses will sell and stability can return to the Real estate market within a year.

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