Why are so many piggs happy about crashing RE prices?

[coxapple]

Mike 29104
‘Now there is light at the end of the tunnel, and I can afford to buy a house once the prices come down to “normal” levels.’

I would be very interested how you (and your Dad) intend to determine that they are at normal levels.

Personally I think the area is at normal levels , but it won’t make sense to buy for a LONG TERM house owner until the local economy stabilises: ie price are back at the long term norm in relation to the long term drivers , but as the health of the local economy is likely to be a major influence, such buyers should wait until at least, for example, Rich’s employment measure stops falling.

[CA renter]

“Normal” is what prices were like before the credit bubble exploded (2001), plus/minus average income increases/decreases since then, IMHO.

“Normal” is probably not a static figure, but representative of the historical, long-term (many decades) relationship between housing prices, rents, incomes, and general wealth of local residents and buyers.

[CA renter]

“Normal” is what prices were like before the credit bubble exploded (2001), plus/minus average income increases/decreases since then, IMHO.

“Normal” is probably not a static figure, but representative of the historical, long-term (many decades) relationship between housing prices, rents, incomes, and general wealth of local residents and buyers.

[CA renter]

“Normal” is what prices were like before the credit bubble exploded (2001), plus/minus average income increases/decreases since then, IMHO.

“Normal” is probably not a static figure, but representative of the historical, long-term (many decades) relationship between housing prices, rents, incomes, and general wealth of local residents and buyers.

[CA renter]

“Normal” is what prices were like before the credit bubble exploded (2001), plus/minus average income increases/decreases since then, IMHO.

“Normal” is probably not a static figure, but representative of the historical, long-term (many decades) relationship between housing prices, rents, incomes, and general wealth of local residents and buyers.

[CA renter]

“Normal” is what prices were like before the credit bubble exploded (2001), plus/minus average income increases/decreases since then, IMHO.

“Normal” is probably not a static figure, but representative of the historical, long-term (many decades) relationship between housing prices, rents, incomes, and general wealth of local residents and buyers.

[coxapple]

CA renter

I would go for local nominal GDP or Income per capita as the key long term (higher than inflation) , but who knows.

I suspect the boom stated from a ‘normal’ level around 98/99 in relation to such a metric and we are back there now. But the long term investor needs to wait for the job losses and bonus cuts to happen and then cease before buying.

[coxapple]

CA renter

I would go for local nominal GDP or Income per capita as the key long term (higher than inflation) , but who knows.

I suspect the boom stated from a ‘normal’ level around 98/99 in relation to such a metric and we are back there now. But the long term investor needs to wait for the job losses and bonus cuts to happen and then cease before buying.

[coxapple]

CA renter

I would go for local nominal GDP or Income per capita as the key long term (higher than inflation) , but who knows.

I suspect the boom stated from a ‘normal’ level around 98/99 in relation to such a metric and we are back there now. But the long term investor needs to wait for the job losses and bonus cuts to happen and then cease before buying.

[coxapple]

CA renter

I would go for local nominal GDP or Income per capita as the key long term (higher than inflation) , but who knows.

I suspect the boom stated from a ‘normal’ level around 98/99 in relation to such a metric and we are back there now. But the long term investor needs to wait for the job losses and bonus cuts to happen and then cease before buying.

[coxapple]

CA renter

I would go for local nominal GDP or Income per capita as the key long term (higher than inflation) , but who knows.

I suspect the boom stated from a ‘normal’ level around 98/99 in relation to such a metric and we are back there now. But the long term investor needs to wait for the job losses and bonus cuts to happen and then cease before buying.

[Author]

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