[quote=jetonejet]I am a believer in the fundamentals camp.
House prices will level when:
Supply = Demand
(work through all the foreclosures)
Price = the historical 3to4 times peoples annual incomes
(current median income in CA is like $60K)
cost to buy = a little more than renting
(still cheaper to rent)
Other physcalogical factors:
People not fearing losing there jobs
People not losing their asses in the stock market
This is my uneducated opinion…[/quote]
“Price = the historical 3to4 times peoples annual incomes
(current median income in CA is like $60K)”
Although I can believe that in places like say Temecula Valley ( a ways away from the coast),
Once the Foreclosures are gone, Coastal Ca will always demand a paradise tax (premium) always has always will.
Just ask anyone living in Hawaii .
One more thought, even in Temecula valley this will mean much smaller homes/condos etc…
There is the cost to build factor.
Maybe this is what they mean when they say lower standard of living …
