You raise some valid counterpoints. If wages go up, then house prices wouldn’t have as far to fall to revert to the mean. However, wages in this country have been stagnant for over 10 years. Outsourcing and illegal immigration have put downward pressure on wages. Ex: wages for Computer Engineers are down over 10% in the last few years. And this is happening despite high inflation (I know, CPI is low, but I don’t buy it).
So I respectfully disagree, and maintain that housing prices will fall, and wages will continue to stay stagnant or fall in real terms.
