OK. This is the kind of chart that scares the hell out of me. No one addressed the questions I just posted a few back.
I’m contemplating taking the plunge on a coastal property that when all said and done may be at 2001 prices. If it drops a little more, then I’m not too worried. If we’re seriously looking at a depression, can we really go negative levels of the ’30’s?
Coincidence that 77 million Americans born between 1946-1964. Almost justifying the last major incline that sustained itself w/slight ups and downs through the ’90’s.
If subprime never entered the picture, what would make any appreciation happen? There’s more factors that would lead to decline. I’d be thrilled if it just flatlined.
Those 77 million are going to end up selling their places adding to inventory. I find it reasonable to think if one takes out the subprime factor that we could be back to 2001 levels or thereabouts. But if we factor gradual inventory increases over a period of years of the boomers selling, how low can it go? It would be a triple-whammy. Subprime gone, unemployment up, inventory rising.
