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Originally Posted by gales0678
i am not saying that it is good but the reality is this
if you have to remeber we had gains from 2000 to 2006 of 100% to 200% in some areas - clearly now bubble like and unsustaniable
so yes we are still way overvalued in many cities across the country no matter what the politicans say or do
look at historical increases in houses over decades at a time to get an accurate picture
get the median income of an area and times that by 2-3 and that is where housing prices for that area should go to be affordable again by historical standards
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I agree there was an artificial ceiling that was too high. My point was that it seems that has been adjusted downward...admittedly..I don't know from an economic standpoint where exactly the right level is, but just was surprised at your perception/belief that they are still overvalued in some markets and could use further devaluation. When someone who bought a house 5-7 years ago and can't find a comp that allows them to sell their house without owing money on an 80% LTV ratio, then that seems wrong to me. And that is happening around here to people who are not reckless or were irresponsible when they got their mortgage.