One comment he makes in a November 2006 three-part series on Youtube is that prices today will be where prices are in 2012.
Clearly it depends on the location, but I disagree with this for California and contend that they will go lower based simply on income. To support the current average price in CA somewhere around $500,000 incomes, currently at an average of less than $50,000, will basically need to double in the next 5-6 years.
Based on the current rate of pay increase, no more than 4% for the West, a number that is arguably declining, the income required will need to more than double.
Criticize this guy for making specific guesses, but at least it’s based on data and not desired results.
I think nationally his numbers are more accurate, but for CA and it’s hot markets in particular, I think it’s going to take a lot longer than 6 years to correct. I just don’t see incomes doubling in that time.
