“It is only a matter of time before prices revert to historical norms.”
Nonsense. Prices will not go down. They won’t even stay the same. They will continue to rise!
(This message brought to you by the free republic “There is no bubble” brigade.)
You got that right! Here in the Seattle area, our bubble “burst” - the increase is now “only” 7% per year, rather than 20%...
Land is the only thing that’s truly a finite resource, and the only resource that is REQUIRED for life. Not gold, not silver, not hog futures, not computers.
Nonsense. Prices will not go down.
Bunny, if Socal is thinking the way I am, he's not saying that prices will go down, but that they'll stop appreciating at the outrageously high rates they were in the recent past, at least they'll stop appreciating that way for now. They will continue to rise at a more modest rate, I think, for a couple of reasons: they represent land and homes, a finite resource; and they're located in a geographical area that is hugely DIVERSE in its economy (there is no one industry that dominates here) and one that has an incredibly nice climate. The demand for housing here is going to continue.
There’s no bubble. Inflation is being held in check by the troubled housing market but other signs are: strong metal prices (many mines being opened after years of being capped) and oil prices at an all-time high. Real estate is the third item that betrays an inflationary cycle... mostly brought on by the binge spending in Washington. The time to pay the piper must come someday.