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Similar story: Card from realtor, offering a townhouse just like mine, but for over 2X what I'd paid four years before, and 3X what they'd originally sold for s
by pjmorris 9y ago
Similar story: Card from realtor, offering a townhouse just like mine, but for over 2X what I'd paid four years before, and 3X what they'd originally sold for six years before.
Me to realtor: Is that a realistic price?
Realtor: I sold one just like it for that much last week.
Me to wife: Time to sell.
* - Along with a pile of other reading, it was the Robert Shiller 100 year graph of the relationship between house prices and income [0] that told me trouble was coming. Ultimately, most mortgages and rents are paid out of wage income, and there's only so much blood you can squeeze from a stone.
[0] https://archive.nytimes.com/www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html https://archive.nytimes.com/www.nytimes.com/imagepages/2006/...
- rubidium 9y agoSo what do you think of where we are now in 2018 (as we creep nearer to the nearing peak of 13 years ago)? US Home Prices 1890-Present: http://www.econ.yale.edu/~shiller/data/Fig3-1.xls http://www.econ.yale.edu/~shiller/data/Fig3-1.xls
- pjmorris 9y agoThe intervening years have colored my perceptions. I'm uncomfortable with prices as high as they are... but it is clear from the interventions of the last ten years that the US government will pull out all the stops to keep the mortgage debt load in place. I don't know what breaks next - the 2016 election is an example of something that broke - but it probably won't first be the overall mortgage debt load.
- SimbaOnSteroids 9y agoProblem is we just bailed out the ones that will need bailing out, in the form of the tax break.
- deleted 9y ago[deleted]