Saturday, November 13, 2010

RE: Information Request

I received a question from Steve that my readers frequently ask:

Hi Mark

So if the market does not crash how are people going to pay for homes ?

Should the prices keep rising..... Already most are paying 60% of there income towards their home, how can this continue?


Hi Steve,

Thanks for your comments.

People have been saying "How are people going to pay for homes ?" since the mid 80's There are always people who can afford more expensive homes. As long as the economy stays healthy and people are employed, then real estate will continue to get more expensive over time.

60% house payments/income is too high. That's house poor. People have to realize this is too high and puts too much pressure on their lives. They have to settle for less, move out from the expensive core area and commute.

What do you think?


1 comment:

  1. history shows a steady increase in prices of everything (not just real estate). Whenever there is explosive growth its usually followed by corrections. Can anyone time it..?