Can I just say that I do think he makes a good point about inheritance…
Yes, in general I think his comments demonstrate a lack of awareness, but in thinking about why the housing market got so over-inflated in the first place you have to consider some things that just don’t show up in the standard formulas.
For example:
– More than two incomes paying a mortgage. On our street, a pair of brothers from the Phillipines bought together and it looks like there are a number of wage earners under that roof. Immigrants often pool resources.
– Hidden income. I tend to believe the US has a substantial financial underground. This makes me think of another neighbor who is from another country and tells us that he makes a living in “retail.”
– Inheritance has to be a factor. When estates come the way of Californians I would think that real estate is the place they most likely park it.
JS
Not a real estate professional, just someone who follows the market
