Uhhh, rockingtime, I WAS THERE. Yes, it’s truly different this time.
Although I don’t automatically think that newbie Pigg phaster has “pegged” the current market, (he’s actually one of a few Piggs who quote incessantly from the MSM), his historical interest rates speak for themselves. Uh, hello out there??
And you are forgetting that the recent crazy seller-fueled US coastal residential RE market (meaning ~50 miles from the coast but more pronounced the closer the property is to the coast) is now being invaded by foreigners at a MUCH HIGHER CLIP than anyone could have possibly imagined in 1984!
Nice try, rockingtime, but your link (circa 1984) is what it is. A moment in time where buyers thought it was obscene to pay 2-3x the 1971 value for a CA coastal property.
In fact, residential properties along the CA coast to about 50 miles inland (referring to SFRs, NOT condos here) were grossly UNDERVALUED until about late 1988 thru very late 1990. I believe that values which sped off northward at that point forward in this region became wholly dependent upon mortgage interest rates (except in the very high value areas, where interest rates didn’t really matter to this cohort of buyers).
The reason being is because while the 1989-90 values were 2 times+ the 1984 values in many SD areas, during that time, the prime conventional mortgage interest rate plummeted by over 4%!
