The present national housing crisis has impacted areas where once boom towns are now turning into bust . Affordable housing, Jobs, Public Transportation, State incentives to attract job creators plays a vital role.
How much did house prices go up from about 1998?
Perhaps add about 30% for inflation.
You have what the prices should be barring any local variables such as no jobs left in the area or massive new businesses expansions creating much higher income jobs.
Look at what the average income was 10-12 years ago. Look at what it is now.The difference in income is usually about 30%. That says house prices should not be more than about 30% above the prices back then.
Will they fall as much? Probably not. I doubt prices went up as high as a % compared to the west coast.
Will they drop? Yes, prices are still not in line with incomes per historic norms.
Add in unemployment problems, bad loans that will reset causing foreclosures and lower prices will come. It just may take awhile to arrive.
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