[Bubba_Leroy]

The big difference between the real estate market and the stock market is that housing supply and demand varies tremendously based on location. The price of an identical house can cost you $100K in one part of the country and $1M in another. The price of a share of Exxon stock is the same everywhere.

Consequently, I do not see a national real estate bust, just as there has never been a national real estate boon. At any point in time since WWII you can point to places that are having a real estate boom and other places that are having a real estate bust.

[Polybius]

The big difference between the real estate market and the stock market is that housing supply and demand varies tremendously based on location.

Prices also vary wildly if you are buying either stocks or real estate with money that you can afford to spend or if you are buying real estate or stocks at speculative prices you cannot afford except by buying on margin or with interest only loans.

You will always have a differential on value. However, you should not allow that to blind you into paying twice what the true value is just because Guido the Loan Shark is handing you $600,000 to buy a $300,000 house that speculators say will sell for $1.2 million next year.