Are you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage
– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!