It's not speculation - it's a shortage of land (and thus housing) in an area that is desirable to live due to weather, culture, etc. with a highly skilled and well-paid workforce.

So, the shortage gets worse, not better.I will agree with REI on this point.

I would also be at a shortage of capital at the moment :lol:The area we live at (DC Metro), residential real estate just exploded in the past 6 years.

If your home is foreclosed on and is sold at the sheriff's auction, and the amount of the winning bid is less than what you owe, then the lender does have the right to come back to you for the shortage.

Property #1Purchase Price $149,500 (Nov 2004)PITI - $1725 (includes $350 for HELOC, $250 for escrow shortage pymt (12months left), $125 Association Dues)Rent Received: $1195Net - -$530 (ouchhhh)And this does not even take operating expenses into acct (double ouuchhhh)...and a very high vacancy rate in Property #1...Positives: This areas has NOT seen a decrease in prices at all.

Convince the lenders you have no money and no way to pay off the shortage.

All the foreclosures in these complexes are causing a shortage of hoa dues, leading to the complex going down hill: Termite damage left unrepaired, giant potholes, wood damage, squatters.

In many markets there is a shortage of rental properties.

And despair, in an age of increasing shortages, poverty and hopelessness, will be one of our few surplus commodities.

The latest status quo is that there is a shortage of housing because of delays in building residential homes (apartments & villas) and thus has alleviated the prices this year (2008).