believe they think housing prices are still falling. I concur. They
then look at the first chart below and conclude that prices today
are lower than they should be based on the historic trend line.
Thus, they anticipate future appreciation in values:
"Once we return to the factors which normally determine
property values, prices should appreciate nicely."
I am not going to pretend to know the answer. But, when I look
at the second chart below, the trend line that I would extrapolate
indicates prices have to fall another 5% or so to reach the historic
trend line. So does that mean we will reach stabilization, followed
by slow growth?
The beauty of our economic system is that we each get to look at
the data and make our own decisions. In investing you "pays your
own money and takes your own chances."
|The first chart|
|The second chart|