One would hope so, we are now 6.5 years post peak and 5.5 years past the door being shut on all the "creative" financing. This was bound to happen at some point or another.
Let's see what happens once they take the training wheels off this bitch. The usfedgov has thrown the granite countertops and the kitchen sink, the cheap shit mdf moulding, some ollies quality laminate, and a coat of crappy contractor white. The chinese drywall has had some time to fester. There has been bailout after bailout, gimmick after gimmick, most recently the FINAL REFINANCE at super low rates and with no appraisals, coupled with quantum easing round four doubling the buying of junk mbs from 40B per month to 80B.
We know what has happened so far, let's see what happens next. I'm betting that what with the lack of any antifragility measures, this market will get sick in a hurry. Its like putting the bubble boy in quarantine for six years, and than setting him loose on the world with no immune system whatsoever. Every sembalance of illness will go terminal.
Or not. Maybe the new normal will see 2011-2012 as forming a base, and we rocket ship from here to 10% annual price inflation weeeeeeeeeee!!!
Your median merican shit shack will go for 300k come 2020 LMAO
I agree with Roberto. People need to take a step back and look at the ultimate question:
Q: When should someone buy a home instead of renting?
A: When buying is cheaper than renting.
Home prices will be sustained as long as it is cheaper to buy than to rent. Home prices will eventually collapse if buying a home is more expensive than renting like during the housing bubble.
So, in my opinion, current house prices will not face any significant declines UNLESS rents fall. If we suddenly find ourselves in a deflationary spiral and rents are plummeting, then yes, house prices will crash further.
However, I'm of the opinion that we are more likely to see inflationary pressure.