[quote=skerzz]
Everyone is so concerned with a “bubble” and quickly appreciating prices. Anyone else believe that the price move we saw early this year was the adjustment needed to bring prices back to sustainable market levels after a post bubble over correction? From here, I project modest price increases (5% per year) coupled with interest rate increases over the foreseeable future.[/quote]
Here’s what the monthly payment people would be forced to come out of pocket with to meet your projection. Let’s assume $500K rising at 5% per year modest interest rate increases of 50 basis points per year.
The monthly payment for that exact same house goes up 56% in 5 years if your prediction comes true. Do you expect salaries to keep up with that kind of increase.