I disagree that we will never see prices fall to the point where we can buy for the same price we can rent.
Now I am probably a good bit younger than most on this board and have not wittnessed the past RE cycles. However from what I have seen at the bottom of the past to cycles it breached that point both times. First, around 85-86 and second around 96. So why could it not happen again?
Obviously not in the more desirable areas but it the moderate and lower income areas I see it not too far off now.
IMO affordibility is the biggest factor in behind falling prices, not the only one economy, suppy of easy money etc… But I think even with all the other stuff people are saying “This is crazy, I am not paying that, I am not going to be strapped to my mortgage just to be in the homeowners club”
When all is said and done the freemarket will decide where prices should be and where that is, is a guess. I’m banking on them being close to rental range. We will see…
