I couldn’t restrain from not putting my 2 cents into this subject. Talking about giving financial/RE advice to friends/family is a sure bet to make new enemies. People love to ignore the problem, and I do admire them for that. And DENAIL/IGNORANCE is bliss.

I’ll keep my story short, but for the 3 day long weekend (Labor Day weekend), I’ve had a couple frieds in town from Sunnyvale. They’re great people and highly educated (I mean they’re are both PhD’s in their fields). Talking about rocket scientists…..one of them is indeed that. Needless to say, the couple purchased a home after their school and got great jobs in 2004.Purchased a house for about $550k, and one mentioned (the guy)over the weekend that the house has appreciated more than their sallaries …..aka now on zillow about $740k (4 beds, 2 bets…aprox 1444 sqf..old house).

Anyway, since the subject came up, WHY am I still renting….and I’ve made my argument with my expectation of prices further declining, with a smile on my face.

CONCLUSION: you could sense the reaction and the comeback that….”I don’t think prices will fall”..I mean, even the MOST educated “yes, rocket scientist” are in denial. What could we expect from less educated & comon folk? Not much…..just to ride the market down to reality. In fact, I’ve read a great story from Asian news on US RE market, and it was called “UNREAL ESTATE”…..LOL