Perception may influence reality, but I don’t think it creates it.
The fact is on average home prices are well beyond the only true measure of affordability: incomes.
Yes there are nicer areas, and people who can afford them, but that has always been the case, and averages have been reasonable in the past, prices have come back to earth after previous bubbles and the same people labeling Bears as “Yahoo’s” said the same things in this article during the last bubble, because their ONLY hope is their words will convince people to go buy.
The notion that anything could happen is irrelevant. I prefer to look at what HAS happened. And after the last two bubbles, (both a fraction of the current one) came all the way back down. That’s not a point of view, it’s a fact.
Rich has done great work on dispelling the arguments that claim things are different this time.
