|
On the decline it's self. I think much of the markets around the country were, like the stock market, over valued. They had to fall at least some. Many places had no industry or employment base to support the prices. It's fine to have housing in NY or LA going for 500K+ min. there are jobs in those areas to support those prices. But if homes in my home town Salem, Oregon are selling for 500+ min. it's a problem, almost no one in the area makes that kind of cash. It turns out it's not good for you or your banker if you're buying a house that 10 times your yearly income.
That said I still think real estate is a good investment, esp. now with home prices back down to reality. Even less in many places. I've often thought of buying a rental. I have one up in Oregon now and would pick up another under the right circumstances. No one thinks the bubbles going to burst and when it does no one thinks it will ever come back. It will come back and owning a few homes might be much better then having cash in the bank.
__________________
I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo
Vice President Starkizzer Fan Club
|