[quote=ctr70][quote=mixxalot]The real estate prices do not pencil out to average incomes. It is foreign buyers, low inventory and institutional wall street firms jacking up prices.[/quote]

And mortgage rates the last few years being the lowest they have ever been in the 240 year history of the United States.

Super low rates especially juice the prices in expensive coastal areas. 3.5% vs. say 6.5% on a $700k mortgage in CA has a much bigger impact than 3.5% vs. 6.5% on a $100k mortgage in Nebraska.[/quote]Agree with this except in the most coveted coastal areas (where the majority of buyers pay all cash). Some coastal areas (usually within one mile of the coast) have truly proven to be “bubble-proof” as land on the coastal strip is a finite resource.

And you may be surprised in places like NE (or states with even cheaper RE) it isn’t uncommon for a buyer to pay all cash, as well, especially if it is a vacation home or home purchased for relatives to live in. It’s also not uncommon for first-time buyer-residents of states with cheaper residential RE to pay off the home within ~5 years of purchasing it. In these areas, mortgage interest rates aren’t as sensitive as they would be to purchasers of garden variety tract homes in more expensive locales.

Nice to see you back here posting, ctr70. Are you still living/working up in the PNW?