08-18-2009, 11:36 PM
for pretty much decades home values have increased lockstep with inflation, so house values and buying power pretty much remained flat. (also why investors will always tell you homes are a bad long term investment)
then came increased demand from artificially lowered interest rates, community reinvestment laws, and "loan products" which drove up prices, some of which was a 'bubble', some of which was not.
will there ever be a correction back to be inline with historic home value trends? personally I doubt it, especially in this area. IMO youre going to keep waiting for a loooong if you expect houses to drop another 100-200k+
then came increased demand from artificially lowered interest rates, community reinvestment laws, and "loan products" which drove up prices, some of which was a 'bubble', some of which was not.
will there ever be a correction back to be inline with historic home value trends? personally I doubt it, especially in this area. IMO youre going to keep waiting for a loooong if you expect houses to drop another 100-200k+