recessionproof

No offence but I would rather we stuck to facts. The median house price in Los Angeles in 2010 is $425,000 http://www.housingtracker.net/asking-prices/los-angeles-california/. The median US annual wage from Labor department stats in 2008 was $41,000. http://www.socialsecurity.gov/OACT/COLA/AWI.html. Even allowing for wage inflation which we all know didn't occur between 2008 and 2010 how does $425,000 / $41,000 = 2.5? Go figure!

I concur with the original poster's astute observations and correct reading of the realpolitik. There isn't going to be any housing Armageddon. A collapse cannot be allowed to happen on such a grand scale anywhere in the Western world ( The central banks will step in just as they have to ensure that this doesn't happen). Like I have alluded to in my previous musings on this subject, those drooling and hoping to buy a nice house in a nice area near nice schools etc can keep living in cloudcuckoo land if they think they are going to get 50% drops in price!

Certainly not trolling. Like I stated in my apology to Prof, my post was directed at those who only seem to go into ecstatic celebration when the bank indices report a fall in house prices. They then start to yell from the roof tops about the indices being in cahoots with estate agents and the government if a price increase is reported. These folk can't have it both ways and it's pretty annoying behaviour. I could have calibrated my words in the original post better and I apologize for any offence. It's also important to note that not every home owner is driven by greed when trying to sell. It's only fair they make a reasonable profit. Hoping things crash so that someone who bought at 150K four years ago would be forced to sell at 75k is simply unfair and unreasonable.

Prof, I apologize unreservedly for the tone of my post. I agree completely that stability is required in the housing market and many people on this forum simply want reasonably priced and affordable homes. My post really was targeted at those who seem to think they can get a house on the cheap and have totally unrealistic expectations of the extent to which property prices will drop. These are the same people who celebrate when the bank indices show a drop, yet, they rant and accuse the same indices of being "vested interests" when the figures show a rise in property prices. I just feel it's important to point this out . I did not mean to cause any offence to the vast majority here who give measured and reasonable arguments. It's the charlatan doomsday merchants (who cynically may even own their own homes while advising others to rent forever) the post was targeted at.

Excellent post, Sibley. Pretty much sums things up. The drooling fantasists waiting for 50% drops for a nice home in a nice area really need to get their heads examined. Keep renting folks and living in cloud cuckoo land.

Agree with Torridon18. Was all set to offer on very well maintained 4 bed house in Rosyth. Chap who owned it had it on reduced at 175K FP. Seemed pretty reasonable as it was in almost new condition. In-laws talked wife out of committing and we backed out at last minute. Now all similar size houses we are viewing are crappier and going for circa 180-185K. Lesson learnt, never ever listen to friggin inlaws!!! :angry: