twaddle
Thinks s/he gets paid by the post
- Joined
- Jun 16, 2006
- Messages
- 1,703
Won't argue that it won't regress/revert to the mean but strongly disagree that our mean is determined by home sales in Louisville KY.
Agreed. So, what is the fundamental driver for appreciation in an area? Wage growth, population growth, job growth, and building constraints, right?
I agree that parts of the Bay Area should outperform KY over the long term. But it'll probably be limited to Silicon Valley, and only if prices don't get so high that companies will start looking at KY to maintain their margins.
Of course, if the current credit squeeze drives us into a recession, all bets are off until the economy recovers. Currently, even the mainstream economists (and the fed) are predicting that the housing bubble and resulting credit squeeze will at least impact consumer spending and economic growth for the next 5 years or so.