[nicola_tesla]

True. I’m also saying that for long term sustainability, the median price of a house can’t be any greater than 2-3x the median salary/income in any given area. The old 20/80/36 formula worked well for decades - 20% down, borrow 80%, house/insurance/tax costs no more than 36% of income.

There are a lot of areas that have a long way to go down before this is reached.

Selling houses for 500k+ to people making 50k-100k with 0% down and optional principal payments for the first few years was never a good idea.

[mr_hammer]

“Selling houses for 500k+ to people making 50k-100k with 0% down and optional principal payments for the first few years was never a good idea.”

Agreed, when common sense leaves the building, economic chaos enters.

[JasonC]

Correct - except for the 20% down part. Only trade ups have that, from prior home equity from the exact same bubble. First time buyers never have 20% down, and haven't for 20 years. "But back in my day, when houses cost $8000" yeah pops, that ain't now.