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Re: What Real Estate Bubble?
Old 07-05-2005, 10:50 AM   #16
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Join Date: Dec 2003
Location: Losing my whump
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It sort of has at least a little to do with higher wages. Its a sellers/buyers thing. More buyers than sellers, you get price uplift. More sellers than buyers, a price slide. If there arent enough buyers making enough money to keep bidding the prices up, then the RE market stalls.

We're well past high gross income requirements in many of the fast rising parts of the country. As soon as almost nobody can afford a home with a 40 year mortgage or an interest only mortgage, then no buyers, then no sales, then a price slide.
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