The homes were never affordable. Temporary affordability does not make a home affordable, it just is like putting honey on tar paper. People bought homes they could not afford thinking that they would eventually afford them because of appreciation.
I think many are missing my point. That happens to me alot because I don’t make them well.
Of course prices will go down. That goes without saying and if you ever find a post I have made out of the thousands of posts I have where I said otherwise then dinner is on me JP. Nor did I say that homes will not be affordable. However affordability for me is different then affordability for say Raptorduck who is currently looking at million dollar homes.
AFFORDABILITY IS RELATIVE.
Try as I may to buy a home in Fairbanks Ranch, I will never be able to afford it. Nor would I be stupid enough to if some pinhead broker waived a teaser rate at me. I am not that dumb. Nor will I make myself a home on the beach in Del Mar unless I win the lottery. This is true no matter how “affordable” these homes will become.
JP here is what I was arguing about…Look at what Josh wrote….
Essentially it was,
“if it is that bad, when will I get my beach condo in Del Mar.”
My answer to that is unless you make a very good living, or have a very rich uncle, the answer is never. The same is true for me.
The argument is not that higher end places will not depreciate. They will. Everything will. Please try to understand the point. Affordability varies for each region and it certainly varies for each buyer. I don’t measure affordability by anything EXCEPT WHAT I CAN AFFORD. I am a realist and know that no matter what, there are places that just will be and will always be out of my reach.
