That “study” sounds just like the ridiculous kind of exercise an academic would do. I do agree that prices spiked from the late ‘90s to the mid 2000s, but this was a direct result of that silly old “supply and demand” thing again. Yes, demand was artificially boosted through government and Wall Street corruption and that caused the relatively limited supply to command higher prices.
Prices will level off when the economy reaches some degree of stability, and supply and demand return to historical “normal” levels and cycles. At that point, houses will, as always, be “worth” exactly what a buyer is willing to pay and a seller is willing to accept in an arm’s length transaction. That’s Economics 101.
FRegards,
LH
“At that point, houses will, as always, be “worth” exactly what a buyer is willing to pay and a seller is willing to accept in an arm’s length transaction.”
Exactly, which is probably (based on all known data) about half of what they cost now, and until recent history, goes down, not up over time. Those who understand this won’t be shocked by falling housing prices, as “unexpected” anymore than the “Unexpected” growing unemployment.
You are absolutely correct, and there is not a price something “should” be worth, intrinsically, just what it “should” be worth logically, based on known data. That’s all I was saying.