Crash or No Crash, buyers or sellers market - Posted by David Krulac

Re: funny! - Posted by Marc Lamphier

Posted by Marc Lamphier on March 26, 2006 at 22:32:50:

those numbers don’t tell the whole story. In the Boston area I’ve seen several of these boom cycles in my lifetime; each one was followed by a small decline and then flat prices for 5 ~ 7 years. But these are nominal prices – in the meatime the price of everything else went up and salaries went up and rents went up – and in real dollar terms homeowners saw their property values significantly decrease. You have to factor in inflation. Also, ask yourself what your returns would be over the same period of time if you have bought stocks instead.

Mike was not saying this was absolute – if you believe that history does not repeat itself then feel to believ that this time around is somehow different. But the truth is that neither you nor I could possibly know. Given that, I would have to agree with Mike that history is usually a smarter guide than we are.

Re: funny! - Posted by Mike-OH

Posted by Mike-OH on March 25, 2006 at 20:54:45:

Nike,

Why so hostile? I’m not forcing you to believe that there’s a bubble. I’m just expressing my opinion. Anyway, I’m sure that you’re right - history does not repeat itself.

Clearly you weren’t able to do enough research to find the inflation adjusted prices. You can find the inflation adjusted new home prices at www.investmentu.com/IUEL/2005/20050701.html They are also available on a government web site, but I couldn’t find that again quickly and I’m working on my taxes.

See any pattern?

You can find charts for existing homes and anything else if you are willing to do a little research.

Tulips anyone?

Mike