NYC & SF BAY areas don’t have the vacant land that we still have to build on.
In those areas, you either tear down and rebuild OR you build up.
When the dotcom stocks imploded, amazingly the property market didn’t tank in the bay area.
South of San Fran, a 4 bedroom, 3 bath, 2500 Sq Ft, 40 year old home is in excess of $1 million, and the market isn’t soft. You don’t buy in that area with a minimum wage job!
As discussed, the affordability issue around here will be a major factor to the continuing adjustment of what’s correct, and the market should be flat for a good while once it gets to that level, just like the good old days.
I don’t think that you compare this drop with the 1990’s.
The last drop didn’t have the mass amount of exotic loans and 100% financing that now exists.
Even with down payments, people were upside down…There should be multiples of the losses sustained 12 years ago, and that lasted several years.
This “correction” should last longer. Seems that most of us agree on that.
