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11-12-2012, 10:15 AM
  #223
Halibut
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Join Date: Jul 2010
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Quote:
Originally Posted by smackdaddy View Post
Housing markets are going to crash because in no way in hell is a house worth what it's being sold for today. This bubble needs to burst otherwise it'll just keep inflating and thus screwing over even more people. Yeah, it really sucks that people decided to buy houses that are really worth around $150k for $300k+. I guess all they can do is shrug their shoulders and say "Oops".
There is no such thing as "worth", 150K and 300K arent what they used to be. In the mid 70's houses were going for less than 30k but they're obviously worth more than that now. Inflation pushes value up over time as long as people can keep paying their mortgages and as long as their is work here that will remain true. The only real concerns are sharply rising interest rates which will make those mortgages harder to pay off or a collapse in oil prices. Real estate prices have stayed pretty stagnant for 5 years now, that is how the market is rebalancing itself here.

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