[quote=Scarlet]FIRE economy is dead, on this we all agree? What is on the horizon to replace those jobs? The average household income in Temecula WAS around $50k, what is it now that unemployment is a rose colored glasses, 10%? The FIRE economy allowed people without degrees to make really good money.
[/quote]
Where is your source of the income data? (In God we trust, everyone else brings data) I posted mine from census bereau earlier in the thread which shows that the current price is justified:
In addition, the price to income ratio is always above 3 here in San Diego in all previous recessions. In addition, such kind of calculation conveniently ignore the impact of low mortgage rate.
However, I agree with peterb’s point of view that this is not a normal recession. So the previous yardsticks may not hold. So just like in other thread TG posted about 1985 pricing, I think most piggs (even all the “cheer-leaders”) still agree that it may not be a good time to invest yet, but buying a primary residence has a lot of emotional factors invovled so one has to decide for his own family. It definitely has much less downside risk now comparing to even just one year ago.
