Dude from Pimco believes Median House prices follow Federal monetary policy.
Contrarian Bond Pimp Bill Gross
"...I think it�s pretty clear that real housing prices have peaked on average four to six quarters after the central bank first raises interest rates and following what appears to be 200 basis points of short-term rate hikes."
The Fed began raising rates in July 04, so we are very close to the peak in housing prices. Based on housing inventories in the hottest regions, we may very well be at or past the peak.
jkarolyi, what is market rent for your condo? What is your current outlay (mortgage, taxes, insurance, association fees)? If the two are wildly off, it's time to sell.
I find it reassuring that at least many acknowledge there is a bubble in housing. This time last year folks continued the mantra that housing could not go down... they aren't making any more land, everyone wants to live in _______ (insert your town here), it's different this time.
Housing starts have been around two million units per year. US population is growing by ~three million per year (via birth and illegal/legal immigration). Stuffing 3 to a home, you will need one million new homes per year. What happens to the other 1 million homes?