Let's say, just for the sake of argument, that CA. R.E. does not tank and continues to rise in value. That would mean that a modest house in a decent, (but not spectacular), neighborhood that now sells for ~$1M will rise to $1.5 in a couple years. This would merely continue the current trend, more or less. Let's say that rates continue even a slow rise.
Where are the millions, and I do mean millions of people going to come from that can afford a $10-12,000 @ month mortgage, month in and month out, for 30 years?? That means serious assets, not "have a bad month and can't pay on the first".........
This really confuses me.
