And SoCal real estate in the late 80s / early 90s was crazy - people had the same belief that houses never decline in value - by '93 there were foreclosures everywhere, houses had fallen 30% in some areas, and condos were worse.
Here's a source for historical housing prices by metropolitan area.
http://www.ofheo.gov/HPI.asp
Quote:
Originally posted by SoCal911SC
"rent for a few years"
Craziness always results in a crash. Nasdaq 5000 was crazy. Ferrari prices in the late 80s were crazy (at one point at its peak, I remember even old 308s were appreciating at 15% PER MONTH and were closing in on being $100,000 cars. I saw a beater 246 sell for $300,000).
What drives those things? The same thing that is driving the housing market now: The irrational belief that the appreciation will never stop or that housing prices will never go down again. That somehow, this cycle is different from the other cycles that have historically happened.
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