I have some questions. We had our peak in the late ’80’s for whatever spurred it at the time. In the early ’90’s we had a decline and flatline in real estate until what, mid ’90’s when Clinton did away w/capital gains and lowered rates. Then prices crept up at a reasonable rate, I’d say, making up for years of negative pricing. Those were the 2 things that were the shot in the arm for real estate, until it leveled out. Up until about what, 2001 when Subprime, Etc. got in motion.
I believe that one should take Subprime out of the mix. What would be normal appreciation were that not a factor? Where would prices be? Better question. If subprime never entered the picture, what would make any appreciation happen? We certainly have reasons to explain why we believe a decline is in order. What would be the impetus for an increase in price?
