I said it back in 07 and I will say it again. The only way out of this all is time and inflation. The bubble was big so it will take alot of time and a bunch of inflation which will come slowly. Prices down, interest rates down and rents up are slowly addressing this all. I see it in my own community. It seems like prices have fallen about $50K in the last 6 months and rents have risen $300 to 500 in the last 12 months around here. Its absolutely nuts out there again. Two years ago I had two people very close to me come for advice on rentals. I found them great houses owned by long term owners at below market rents and encouraged them to sign multi year leases with options. Both listened and now have great places to live that would rent at least $700 more per month today. They pay the rent a week early every month and take care of everything they can so the owners never think twice about changing the terms. They are literally paying close to $10,000 per year below market rent.
And the PTB are winning whether you want to admit it or not. Its is working. Its going to take alot more time but in the end they will win because “the house makes the rules”. Go to Vegas and prove otherwise if you like.
