off_world_beings <[EMAIL PROTECTED]> wrote:

> > We appear to be talking two different things. I am referring to
the disparity of rent and mortgage payments for the SAME property, the
> > same exact house. 
> > On the other hand, sure, one may live in a multi-family apartment, 
> and decide to move to an new neighborhood, with a yard, probably
better schools, more square footage, and sure, the mortgage payment
will  be  more than the rent. But the property is also much more 

> Oh, ok. All you are talking about is how one area becomes harder to 
> live in for the working people there. This happens in many places. 

NO. Thats not the phenomenon that I am talking about. I am refering to
most major housing markets across the US where there is a strong
divergence for rents vs mortgages for the same properties. The
divergence is unprecedended. It is is one of the things strongly
signaling a leveling or decline in US housing prices -- at least in
major west coast, east coast and florida markets. 

This  and other factors are:

1) Unprecedented divergence of rent from mortgages (for gpropgaerty)
2) Unprecedented lack of affordibility of housing. In the SF Bay area
only 15% of new buyers qualify for the median priced home.)
3) Unprecedented levels of new construction in major markets which ia
not tied to population growth.
4) Unprecedented holdings of 10 year Treasuries -- the bench mark for
US mortgage rates by foreign investors, the leading one being the
Chinese -- who are begining low reduce holdings, which will result in
higher mortgage rates.
5) Unprecedented use creative financing for home buyers -- which makes
them very vulnerable to interest rate increases.
6) Leveling or declining prices in major housing markets beginning. 

> The Lake District in England is pretty much impossible for anyone 
> not on a fairly high income to live there now. They would have to 
> commute. 

So what? This has little or nothing to what I am referring to.

< Nothing new in this phenomena. Happens in US also. But it 
> is not an across the board National phenomena, 

What I am referring to is across the board in major markets.

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