Josh,
Good argument. My theory is that Boston’s initial decline happened sooner due to less investor activity and a smaller sub-prime market (i.e. less mortage fraud). Houses near my office that were $650K a year ago can be had for $525K today – in one of the best public school districts in MA (The local high school sent 19 kids to Harvard out of a senior class of 300). The bubble burst and people got over it. I’ve heard that underwriting criteria tightened up considerably.
So today, one could get a $150K job and buy a house in a neighborhood with some of the best schools in the USA for $525K. It is indeed an interesting dynamic when comparing the situation in SD. I know, I know – the Sunshine Tax. Those poor fools using 50% or more of their take home pay to service their mortgage debt can always console themselves with their annual Sunshine Tax payments.
