Thinking about buying -- info on housing market

[mortimer]

GregW wishes for:

> I am looking forward to the day when housing prices again are based
> on the house’s value as a home, not as a speculative investment.

That isn't going to happen until the government subsidies are removed:

-- tax deductions for interest on primary mortgage
-- tax deductions for interest on line of credit
-- tax deductions for interest on secondary mortgage
-- tax deductions for interest on secondary line of credit

[Devin Bent]

Originally Posted by GregW

It seems to me that $200,000 is way too high in a market where most folks are lucky to make a gross income of $40,000 per year. Speculating that the 200 grand houses will be worth 250 in the five years between corporate relocations might make it worth that much but not for a permanent home for a family.

I am looking forward to the day when housing prices again are based on the house’s value as a home, not as a speculative investment. If folks want to gamble there is always Las Vegas or Wall Street.

I suspect that you are right for most folks, but when I buy a house I don't spend a minute thinking about most people who after all live in a household of 2-3 family members. The last time I bought a home, then I was buying for an extended family of 6.

Also, if you buy housing for the long run, IMO it is not that much of a gamble. The supply of land -- which seems to be driving prices -- is fixed and the population is growing. Supply and demand says prices will go up.