With all due respect to forums like Piggington, it is not necessary to have Internet access to figure out that real estate is in an unsustainable bubble. The most obvious clue is when mortgage payments are double the rent for an identical place, as they have been for quite some time in the better areas of SD. It doesn’t take a rocket scientist to figure out that is not sustainable long term.
What is someone thinking when they purchase a house that is clearly so overvalued (basically anyone purchasing SD real estate in the last 2-3 years)? Simple, they believe it will continue to appreciate. Pure speculation and gambling.
