Reply #1: One thing is to consider interest rates. [View All]

$80K at 5% and $65K at 7% are roughly the same payment.

The only way we could buy our home is ultra low interest rates. However although we are above water the analyst in me says home prices will not be able to rise much over next decade. As interest rates (and they WILL rise) the same home gets more expensive (in terms of payments) which means even after the economy recovers housing has very little upside (unless we see significant wage growth).


However I agree housing prices are still to higher or more correctly wages are still too low. We had a decade where GDP rose 28% wages should have rose 28% but they rose 4%. If wages were 20% higher today the housing prices would be more justified.