patrick.net

hrhjuliet says

Shelter is a need, and should not be primarily an investment. Beyond that, we have a society that hopefully still believes in the principles this country was founded on and hopefully still want to see a thriving middle-class and life worth living for the next generation.

I agree shelter is a necessity. Do you know our country is the most housed nation in the world?
Why do you think that is? We must be doing something right.

Call it Crazy says

Strategist says

What makes you say the prices are inflated?

Here's the current situation:

http://patrick.net/?p=1239961

Does not indicate prices are inflated.

House is both a shelter and an investment. Without being an investment, durable houses wouldn't be built or maintained.

The issue is the interest rate and easy credit availability. With interest rate artificially low and over-abundance of easy credit money, capital assets can be over-priced thru forward discounting on too-low of an interest rate therefore resulting in bad investment.

Call it Crazy says

Strategist says

Call it Crazy says

Strategist says

What makes you say the prices are inflated?

Here's the current situation:

http://patrick.net/?p=1239961

Does not indicate prices are inflated.

Then why are sales DOWN by double digits YoY when inventory is UP by double digits YoY??

Sales are down, not prices.
Sales are down because of unnecessary tight loan requirements. If they loosen up as they should prices would go even higher.
Higher home prices are good for the economy, not lower.

Reality says

House is both a shelter and an investment. Without being an investment, durable houses wouldn't be built or maintained.

Believe it or not, some people maintain their home so it's a safe and enjoyable place to live. Some of the most durable homes I have ever been in were built by the owners with no intention of selling it or renting it. Durable, aesthetic and well-made homes decreased when prices began to rise. I think bulls and bears would agree on that.