patrick.net

wI'm pretty bullish on the economy which I think will effect housing. Even if there's no inflation when the economy improves either rents or housing prices should go up.

Hmmm....I see more newly joined bulls. What happened to our seasoned bulls?

shrekgrinch says

Expat64 says

House prices always go up. You can’t make more land. It’s a great time to buy. Interest rates are low. Foreclosures and distressed sales don’t count. Real estate is all about location and each house is unique in its specific location so it will go up in price. The Bernank has our back. Lereah will return! And, it’s a great time to buy or you will miss out.

Please tell me you’re being sarcastic.

Seriously, I am thinking he is sarcastic.

Tim Aurora says

While I do not want say that there will not be an inflation, the following reason is why Housing market will com back in 4-5 years

* There is a need of ~1 million unit a year and currently the builder are not even constructing half of it. That will continue for a few years till the current inventory is low enough to rebound. Builders ( and associated infrastructure such as roads and schools ) will not be able to ramp up very fast and that will cause a good rebound

* Foreclosed activity started 4 years ago. The associated population can renter the market in approximately 6 years time. That gives another 2-4 years before we start see these folks coming back

* Unemployment will ease in another 3-4 years which in turn will have two effects

** Unemployed folks who are now living in their parent’s basement and apartments will enter the housing market.

** Increased confidence means folks will start moving up.

these are conditions that should see prices rising nominally with inflation (over the long term).

they will not cause prices to "come back" to rates of appreciation seen during the bubble.