I can't wait to see that happen here. I'll bid 300k for that Pienza home in 4S Ranch please. Can you imagine the hostility in that neighborhood for years to come. The new buyers(lucky) vs old buyers(screwed). That one "Dude" looks like he'll be part of the welcome wagon for the new buyers.

 

Uh recordkeeper, it's definitely going to be a Kodak moment when homes like this are $300k,  but interest on the mortgage will be like 15-20% with tighter lending rules, higher inflation, and stagnant wages. Can you imagine the hostility in that neighborhood for years to come? 

…Some of old buyers(screwed). 

…Most of the new buyers (still screwed on affordability/attainability).

…A few of the sideliners tha can buy a $300k-400k home in cash(lucky).

 

Relaxed financing and low interest was a blessing for those that could have managed their finances. If you think things are bad for the average folks now, wait until mortgage rates get insane, inflation rises, while salaries stay stagnant.You think average salaries are going to rise at the same rate as inflation to keep pace, or that interest rates are going to stay below 6.25%? You might be in for a rude awakening yourself.

 

if you're doing what most people are doing which is keeping your funds in a CD/government bond/and or money market. It's like 5.5%-6% right now tops. Is this keeping up with inflation? Nope. You willing to take the plunge into stock market and risk a downturn to try to beat inflation?

I'm not wishing a demise for the house industry. Because either way, most average joe's will get screwed too..If you're not going to be able to do a near cash-and-carry, affordability/availability is still going to be an issue.