I am in agreement that yes the market will depreciate and by the end of the cycle we could be down by 20-40% DEPENDING on the type of property and neighborhood, maybe even a little more.
Yet I am in disagreement in comparing real estate to stocks. You cannot live in an equity. Nor can you raise a family, entertain, or have a bbq in the back yard. You can’t have an ocean view with an equity. Similarly your equity doesn’t live in a neighborhood where you send kids to school and such. Again, I am not defending the economics of buying a home. For the umpteenth time, I am pointing out people buy real estate for other reasons then the economics. They enjoy other aspects that cannot be measured in dollars and sense because they can afford to. I don’t defend the decision or condemn the decision.
I just get puzzled at why the same question is asked over and over and over again.
