[img_assist|nid=4186|title=SD and LA Affordability Index: Probability of no crash…small|desc=I like to see the posts about how RE can possibly not collapse since it helps avoid group-think and keeps people thinking.
But, can anyone, either a true bull or simply a devil’s advocate spin with real data?
The chart above shows that less than 2pct of LA and 5pct of SD can afford to purchase a median priced home, with House-to-Income ratios hitting 9.5 and 7 respectively. These blow away their historical means and make the last boom/bust look quaint.
With the fat lady in her full glory on fancy financing, what Deus ex machina can anyone come up with to keep RE from absolutely tanking?
Boatloads of Chinese wielding US dollars?
Bill Gates buying Temecula on a whim?
Chuck Norris roundkicking would-be buyers into action?
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fat tails aren’t supposed to exist in the world of financial hocus-pocus – but they do
welcome to reality
~
if I were trying to spin this I would say that it is statistically impossible for there to be such a discrepancy between incomes and housing prices and therefore the anomaly is only a short-term aberration that can and should be ignored
fat tails aren’t supposed to exist in the world of financial hocus-pocus – but they do
welcome to reality
~
if I were trying to spin this I would say that it is statistically impossible for there to be such a discrepancy between incomes and housing prices and therefore the anomaly is only a short-term aberration that can and should be ignored
fat tails aren’t supposed to exist in the world of financial hocus-pocus – but they do
welcome to reality
~
if I were trying to spin this I would say that it is statistically impossible for there to be such a discrepancy between incomes and housing prices and therefore the anomaly is only a short-term aberration that can and should be ignored
.
