“However, following conventional wisdom or the mass psychology rarely makes one exceptional profits in any bubble-type market, does it?”
I feel comfortable with this statement but the reality is that there are millions of homeonwers out there. The large majority of them never look at the value of their homes. Most have done extremely well over time. In 10 or 20 years I would tend to think that today buyers would be in a similiar situation.
With respect to paying upwards of 50% of ones income “well that is a bonehead move” buying way to much house.
What strikes me as funny is that over the lst 7 years I have been out here people talk about their homes as good investments at the time of purchase. There is little mention of a home zs an investmetn after the 5 year mark. At that point people are talking about eauity lines and how they want to have a built in fire pit outside etc. The reality is that theme smae people begin to settle in and the house is no longer thought of as an investment.
With respect to the argument that real estate is slwo and predictable. Well I don’t know about anyone else but 2000 to 2005 was qanything but slow and predictable and 2005 to 2007 has been extremely fast to the down side. Maybe otehr feels these are normal vibrations of the market I don’t.
