First off, Mr. Baker is completely wrong about the stock market bubble. There were numerous people who predicted that, including Alan Greenspan when he talked about “irrational exhuberance.”
Secondly, predicting prices will go down is fairly obvious. The question is how much and when. There are always corrections, downturns, etc. One thing is for certain – in the long run prices will go up.
The prevailing sentiment on this website is a hope for a big crash. Why? So people can finally buy who missed the boat? My opinion is that if you want to own, you should buy now. In the long-term you will be fine. It’s impossible to time the bottom (if there is one).
I think it should be noted that rents never decrease. Rents are catching up to overall prices. They have to because owners have to make the finances work. I don’t know much about the vacancy rate, but it can’t be too high if rents are going up at a significant pace.
