Comments on: Falling Home Prices in U.S. – How far? http://www.futurist.com/2008/12/19/falling-home-prices-in-us-how-far/ This is the blog of Glen Hiemstra, futurist speaker, keynote speaker, futurist consultant, and founder of futurist.com Fri, 05 Mar 2010 23:46:31 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Wayne http://www.futurist.com/2008/12/19/falling-home-prices-in-us-how-far/comment-page-1/#comment-109284 Wayne Sat, 20 Dec 2008 19:08:43 +0000 http://www.futurist.com/?p=921#comment-109284 Glen, I am a former Real Estate Broker and have long followed the Texas Real Estate market. I would not be surprised if we see a 50% drop in the Austin area. During the S & L crisis about 20 years ago, I did a study for my employer and found that Austin residential real estate prices plunged over 47% and the over all rental market dropped over 50%. For several years there were stongly positive cash flow rental properties on the market that could not be sold at any price. My wife and I did very well during the next ten years just on the basis of this study. During the last 10 years it has been impossible to purchase any form of rental property that actually worked from a positive cash flow viewpoint. So we have been out of the market. I havent done it yet, but I think it would be very instructive to do some real research on that era and the S & L crisis. This situation is obviously worse and likely by a very significant amount. But I believe that such a study could give us a measuring stick to work with. regards Wayne Glen,
I am a former Real Estate Broker and have long followed the Texas Real Estate market. I would not be surprised if we see a 50% drop in the Austin area.
During the S & L crisis about 20 years ago, I did a study for my employer and found that Austin residential real estate prices plunged over 47% and the over all rental market dropped over 50%. For several years there were stongly positive cash flow rental properties on the market that could not be sold at any price. My wife and I did very well during the next ten years just on the basis of this study.
During the last 10 years it has been impossible to purchase any form of rental property that actually worked from a positive cash flow viewpoint. So we have been out of the market.
I havent done it yet, but I think it would be very instructive to do some real research on that era and the S & L crisis. This situation is obviously worse and likely by a very significant amount. But I believe that such a study could give us a measuring stick to work with.

regards

Wayne

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