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homestead - Re: [Homestead] land prices!

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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] land prices!
  • Date: Wed, 9 Nov 2005 10:11:06 EST




> >Rapid real estate depreciation historically occurs when there is a large
> >increase in unemployment, interest rates rise rapidly, population decreases
> >quickly and substantially. Are any of these conditions likely in your area?
>

There is another factor at play and we cannot rely on historical trends to
predict what will happen: Real estate today has two components: 1) The use
value and 2) The speculative value. Those historical contidtions of
population,
unemployment, etc are the only things that can affect the use value. But the
speculative value can evaporate overnight independent of those real factors.




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