[Moonman62]

From your chart, it looks like real estate became more valuable in 1997 after the government changed the tax laws allowing for a capital gains tax exemption on the first $250K earned for single homeowners and $500K for married couples. But I guess that fact just detracts from the irrational FR housing bubble mania.

You beat me to it, too. Unless that law is repealed, and I don't think that will happen, this boom is not going to correct very much.

[durasell]

Unless that law is repealed, and I don't think that will happen, this boom is not going to correct very much.





Depends on how people react. If investors start dumping a ton of property on the market with the idea that "the party's over" and baby boomers decide to cash out on the downward slope, then there could be some ugliness. Also, when all those ARMs start to re-set...