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I think Wayne has hit upon it the best. It is not so much the interest rates, or that "Everyone wants to live in LA(That is patently ridiculous, I would not live in LA if someone GAVE me a house, I have lived there, did not care for it)
It is a supply and demand thing, but not houses, it is financing. There has been a lot of easy money, with people taking out ill advised loans that probably should never have been approved. The Real Estate Industry wants to sell property, they don't care if you can reasonably afford it, or even if you default on your mortgage. If you do, they just repo, resell and get another commission.
It will all fall apart, it is a question of when and how far. I just hope I have enough ready funds to cash in on some poor fool who thought he was going to get rich in real estate.
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She was the kindest person I ever met
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