*Edited to add that prices are actually all over the place. Not sure how appraisers are valuing things, but there are very large divergences between different sales (some strangely low, yet another similar house nearby might be $200K+ more, very near bubble highs). The presence of flippers along with the extremely low inventory in many areas is really adding to the wild pricing.[/quote]
Most of the actual sold are hitting at 2003 numbers. There is a lot of wishing on asking prices and huge disparity between the amount of deferred maintenance on homes for sale.
[quote=CA Renter]It is MUCH easier to make a profit on an asset purchase (especially one that is usually purchased with debt) when interest rates are high and inflation is high. Buying when inflation and interest rates are at/near historic lows, and prices are historically high, does not bode well for capital appreciation going forward.[/quote]
Who needs capital appreciation when you can get a cash return pushing 8% that is basically indexed to inflation and tax sheltered?
