Should the houses be worth twice what they were in 1996?

[Scarlett]

[quote=FormerSanDiegan][quote=pemeliza]

Also, At 3% inflation it takes about 23.5 years for a price to double. Prices in 1996 were an overshoot to the downside. Given the scope of this bubble I would not be surprised to prices overshoot to the downside at about 2001 nominal pricing for the best areas. I’m already seeing this type of pricing in good areas.[/quote]

What areas are you seeing 2001 prices ?[/quote]

Good question, especially since s/he mentions good areas. I am looking in PQ, CMR, UC, Carlsbad and I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…

[patientrenter]

[quote=Nor-LA-SD-guy]I think,
Low end wage earners have about doubled, High end earners (top 20%) have a lot more than doubled. The big fat middle wage have gone up maybe 30/40%,

So for the home buyers the top earners can go big, the middle struggle.
Also take into account on average only about 50-60% have ever been
able or willing to buy homes.

The numbers look about right. But that’s just my guess work.[/quote]

Average weekly earnings of production and nonsupervisory employees(1) on private nonfarm payrolls have increased 50% since 1996. Source: BLS.

[patientrenter]

[quote=Nor-LA-SD-guy]I think,
Low end wage earners have about doubled, High end earners (top 20%) have a lot more than doubled. The big fat middle wage have gone up maybe 30/40%,

So for the home buyers the top earners can go big, the middle struggle.
Also take into account on average only about 50-60% have ever been
able or willing to buy homes.

The numbers look about right. But that’s just my guess work.[/quote]

Average weekly earnings of production and nonsupervisory employees(1) on private nonfarm payrolls have increased 50% since 1996. Source: BLS.

[patientrenter]

[quote=Nor-LA-SD-guy]I think,
Low end wage earners have about doubled, High end earners (top 20%) have a lot more than doubled. The big fat middle wage have gone up maybe 30/40%,

So for the home buyers the top earners can go big, the middle struggle.
Also take into account on average only about 50-60% have ever been
able or willing to buy homes.

The numbers look about right. But that’s just my guess work.[/quote]

Average weekly earnings of production and nonsupervisory employees(1) on private nonfarm payrolls have increased 50% since 1996. Source: BLS.

[patientrenter]

[quote=Nor-LA-SD-guy]I think,
Low end wage earners have about doubled, High end earners (top 20%) have a lot more than doubled. The big fat middle wage have gone up maybe 30/40%,

So for the home buyers the top earners can go big, the middle struggle.
Also take into account on average only about 50-60% have ever been
able or willing to buy homes.

The numbers look about right. But that’s just my guess work.[/quote]

Average weekly earnings of production and nonsupervisory employees(1) on private nonfarm payrolls have increased 50% since 1996. Source: BLS.

[patientrenter]

[quote=Nor-LA-SD-guy]I think,
Low end wage earners have about doubled, High end earners (top 20%) have a lot more than doubled. The big fat middle wage have gone up maybe 30/40%,

So for the home buyers the top earners can go big, the middle struggle.
Also take into account on average only about 50-60% have ever been
able or willing to buy homes.

The numbers look about right. But that’s just my guess work.[/quote]

Average weekly earnings of production and nonsupervisory employees(1) on private nonfarm payrolls have increased 50% since 1996. Source: BLS.

[patientrenter]

[quote=Scarlett]….I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…[/quote]

Home prices in this downward phase of the normal housing cycle are no longer determined by normal private supply and demand. Govt has funneled well over a trillion dollars into housing demand over the course of just the last year, and continues to pump in vast amounts of money.

To understand home prices in the US, forget about normal economics. You just need to see what govt supports are being dialed up or down.

[patientrenter]

[quote=Scarlett]….I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…[/quote]

Home prices in this downward phase of the normal housing cycle are no longer determined by normal private supply and demand. Govt has funneled well over a trillion dollars into housing demand over the course of just the last year, and continues to pump in vast amounts of money.

To understand home prices in the US, forget about normal economics. You just need to see what govt supports are being dialed up or down.

[patientrenter]

[quote=Scarlett]….I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…[/quote]

Home prices in this downward phase of the normal housing cycle are no longer determined by normal private supply and demand. Govt has funneled well over a trillion dollars into housing demand over the course of just the last year, and continues to pump in vast amounts of money.

To understand home prices in the US, forget about normal economics. You just need to see what govt supports are being dialed up or down.

[patientrenter]

[quote=Scarlett]….I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…[/quote]

Home prices in this downward phase of the normal housing cycle are no longer determined by normal private supply and demand. Govt has funneled well over a trillion dollars into housing demand over the course of just the last year, and continues to pump in vast amounts of money.

To understand home prices in the US, forget about normal economics. You just need to see what govt supports are being dialed up or down.

[patientrenter]

[quote=Scarlett]….I see prices at the nominal level of 2003-2004, which is quite a bit higher than 2001…[/quote]

Home prices in this downward phase of the normal housing cycle are no longer determined by normal private supply and demand. Govt has funneled well over a trillion dollars into housing demand over the course of just the last year, and continues to pump in vast amounts of money.

To understand home prices in the US, forget about normal economics. You just need to see what govt supports are being dialed up or down.

[Coronita]

What about inflation?

[Coronita]

What about inflation?

[Coronita]

What about inflation?

[Coronita]

What about inflation?

[Author]

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