I found the following to be a bit counterintuitive:
“There is so much demand. I bet that a lot of people on this forum want to buy but don’t only because they are priced out. Let’s be honest: how many of us would buy if prices were low enough that we could get a 30 year fixed loan, vs. how many of us would buy when the housing market hits bottom?
… The fact is, only a handful of people in this country even understand the housing bubble. … ”
When the time comes that a sufficient number of people can afford to buy with 30-year fixed rate loans won’t real estate then be based on solid fundamentals ?
SO, do people who are waiting in the wings to purchase a house that they can afford with conservative financing not understand the bubble. I thought that was the premise of the bubble, that prices are out of line with fundamentals. Maybe I’m one of the ones that doesn’t understand the script for how the bubble plays out ???
