“We expected what we are seeing in the third quarter data, which is a moderating of appreciation that, over time, is likely to bring prices back into line with the economic fundamentals that support them, particularly incomes,” said Milner
soooo…..forgive me for sounding naive, but in order for prices to come back in line with economic fundamentals won’t that require a crash in home prices rather than a soft landing? after all, the gap between incomes and median home price has never been larger. if people could actually “afford” the median price home(based on traditional lending)then there wouldn’t be the need for exotic lending like I/O and ARMs. right?
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