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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (27979)	3/10/2005 1:37:38 PM
From: Tradelite	Read Replies (3) \| Respond to of 306849

No argument there...Naturally, home prices cannot rise above wage growth--but maybe we should more accurately say, prices cannot rise above what people are able and willing to pay for homes. Are you saying that there has been no wage growth or job growth in areas which have experienced rapid price appreciation? Our local governments in the DC area spend much time debating how to resolve the housing shortage, overcrowded school problem, and transportation crisis--all of which are growing worse. I don't want to get into a debate about whether your part of the country is different than mine, but I'm going by what our local officials predict will be tremendous more job growth in the next few years. As for affordability being at an all-time low-- that might be true on a national basis, I dunno for sure, but I do know that affordability and the nature of the real estate market differs in towns across the U.S. The DC economy can always slow down and the federal government can stop spending so much on defense and homeland security (two big job generators), but they show no signs of doing so at this point. All I'm hearing and reading lately from the real estate community is that inventory is even scarcer than ever and plenty of would-be buyers are frustrated.