Deflation is not a bad thing for consumers or commerce. Deflation is not something governments can manage and so they interfere with the markets to negate it and push toward inflation which reaps greater tax revenues and is more easily managed.

So yes, real estate is bound to fall in the near future or at least hold while other economic factors catch up with its unwarranted increase of late. Those buying under the current market conditions are making a mistake as relative prices must fall or, more assuredly, interest rates will rise negating affordability and prices will be forced to fall.

My point is, real estate will retain a relative value and demand as long as we humans inhabit this earth (not likely to be so long as many think). We all need real estate, many of us choose to own more than we need but still we need it. A buyer should enter the market wisely rather than buying on emotion. Unfortunately we all tend to buy on emotion and later justify that decision based on logic… cognitive dissonance.

“We would have offered sub subprime up here just to keep the house of cards from tipping over. Aint nothing going down on Harper’s shift.”

And what is this current rate offering? Record low interest rates and record high house prices. Not a good mixture.

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yet the bricks an mortar became dirt too in almost every country in the world. A bubble just like dot com one.

Believe me it isn’t sexy….but it has worked for me.

If you believe in RE so much…why buy one property…wouldn’t you rather have a dozen of a good thing instead of one.