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I meant wages staying the same relative to inflation. Wait, I'm confusing myself. I am trying to get at inflation I suppose. You're right - this economics stuff is mind-bogling.
I also think the numbers and reports we get are confusing. I remember Al Greenspan warning of a housing bubble then just the other week saying there isn't any housing bubble. And thee's the conflicting articles too. The Time one if I remember was more gloomy while another article in a different magazine/newspaper was more optimistic.
As far as wages, yeah, I guess there must be good paying jobs if there's no shortage of buyers willing to pay so much for houses (hook me up!). But what would we consider a good-paying job? I thought that $60,000 a year straight out of college with a liberal arts BA was a reasonable, even decent salary. But apparently it's not even a living wage (at least here in Los Angeles). but maybe my $60,000 would get me a lot more in other areas.
But here's the thing: It is conceivable that the effect is a result of speculative buying. That is, people are jumping on the bandwagon and buying houses with the intent to "flip" - so they buy with zero or very little down and with an ARM. So it sort of "artificially" inflates the market no?
I think the article uses Vegas as an example that while housing is crazy, lot's of buyers, the occupancy rate is pretty low - not enough tenants - could be too many speculators.
I thought unemployemtn was around the 5% mark which is desirable right?
And then again, I suppose we would have to take regional/local markets more into account as well in terms of pricing, cost of living etc.
Whew! I'm frazzled - too much econ..hehehehe
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