Housing affordbility

[Mofra]

... in Detroit. Houses cheaper than new cars!

http://news.yahoo.com/s/nm/20070319/ts_nm/usa_subprime_detroit_dc;_ylt=AjbBHrH0dar2UfHs3hOb_7_MWM0F

 

[Smurf1976]

But real estate NEVER goes down. That's what the papers keep saying anyway... :

 

[ROE]

Everyone has their level of risk and because house is something people can touch and feel they feel more secure.

House price do generally move with inflation but what most people don't understand is if house price doesn't goes up by 6-8% a year they are loosing money because yield is like 3 or 4% and they paying 7-8% for their interest borrowing.

 

[Kimosabi]

But real estate NEVER goes down. That's what the papers keep saying anyway... :

Really... In Texas when oil dropped to $10/barrel, housing prices dropped to 1/10th of their value. It was so bad People were posting the keys of their house to the bank a just walking away from their property's.

 

[Happy]

Next global pandemic will probably bring on market many low cost properties

With greatly reduced population, I can imagine people buying property, or just taking it apart for its calorific value in fireplace.