CAR
Good summary of what happened and one I put forth years ago so I wholeheartedly agree with it.
Where we divurge is with what is going on and will go on in the middle. Prices are lower than they were (my house is down about $200K off peak value) and interest rates are lower by 2 to 3% on fixed rates. There is lots of NEW money out there contrary to what you like beleive. There are plenty of people who stayed in their low end homes 10+ years who have tons of equity and are only now moving up. There are people who didnt buy and saved. There are people inheriting lots of money as the “greatest generation” passes on. There are wealthy immigrants coming to the US because of globalization.
Buying my house at the peak (around 950K) would result in a mortgage payment of about $4700 with 20% down. At today’s value (about $750K) the payment would be about $2900. Throw on taxes, insurance and HOA and its not much more than the rent on it (approx $3500). When you consider the tax write off it’s probably cheaper to buy than rent my house if you have 20% down.
