Replies

And prices will need to drop by 50%

True, if you look at the value of a home twenty years ago and calculated it's value based upon the time and value of money during the same period of time and you would be close to what current market value should be.

7 posted on 10/27/2007 7:20:43 AM PDT by org.whodat (What's the difference between a Democrat and a republican????)

1. Homes - on average - historically barley beat inflation 2. Homes (and all buildings) are a depreciating asset 3. Homes - historically - were priced at about 3x the prevailing wage.

9 posted on 10/27/2007 7:24:18 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)

1. Homes - on average - historically barley beat inflation 2. Homes (and all buildings) are a depreciating asset 3. Homes - historically - were priced at about 3x the prevailing wage.

10 posted on 10/27/2007 7:24:19 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)

1. Homes - on average - historically barley beat inflation 2. Homes (and all buildings) are a depreciating asset 3. Homes - historically - were priced at about 3x the prevailing wage.

11 posted on 10/27/2007 7:24:20 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)