Re: Probably Never Will - Posted by Rich-CA
Posted by Rich-CA on January 17, 2008 at 10:33:06:
Because there is no such thing as a “national market” there can be no “national bottom”. As to the high priced markets. I expect the to stay significantly more expensive than most other areas. Here’s why.
People move to Southern California for perpetual summer. I did when I moved from CT and virtually every person I met after I moved who was not born here did for the same reasons. I have lived in the SF Bay area for 25 years now and still cannot for the life of me understand why people are as attached to the area as they seem to be. Its a beautiful area, but that would be a “vacation beautify” as opposed to a living beautiful (like being able to count on nice weather no matter when your day off was).
NY will remain high because there are an enormous number of people in the area and no more land to build on. High demand for limited supply is the classic high price recipe in economics.
Las Vegas I do not understand. Its not a great area to live in, but it is close to CA for all the jobs leaving the state looking for lower cost climates (Phoenix also got a bunch of this). And much was speculation.
I really hate the idea of inflation driving RE prices and rents up because it also means the dollars I earn also don’t buy as much. But I agree with you that this will be the main support for increasing prices.