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I think it will be a drop across the board. Certain areas may fair better, but drop still.

Some good points, but I think your logic runs around in circles....like a dog chasing it's tail. The only thing I can say in order to answer your queries is that rents are not generally affected by this supposed "population growth", but what the "buyer can bear". Let me give you an...

Can you tell us some factors that will contribute to this ?

Also don't forget that there are people who DO NOT care about owning real estate whether it be investment properties or homes to live in. They understand that renting, in the current market, actually saves them money. They say to themselves "why pay $5000 in mortgage payments, when I can...

Yes, basically that is the reason for the boom. Easy credit, and various government grants who's sole purpose were to prop up the real estate industry. Once they do go away prices will start heading down. Also be aware of the mortgage resets, when people start refinancing their...

agree totally goldstar......

I know that in your case it wasn't a mortgagee sale. I understand that the reason he sold were due to health reasons. I said that back then mortgagee sales were quite common.....

These sorts of stories were common back then. Plenty of people were selling because they couldn't afford the repayments. Mortgagee sales were plentiful. Food for thought.

It was a standard Californian bungalow, with 3 bedrooms, lounge, kitchen area, with a big backyard. I understand what you are saying. No they did not have granite counter tops back then, but as Lizzie said earlier, household items (fridge, oven, t.v) were a lot more expensive back then.

Working mothers were VERY common in my neck of the woods. Mobile phones, and internet connections (especially internet connections) are no longer optional extras. Finland, for instance, is introducing a law that every household MUST have an internet connection in the next few years. As...

Yes it has. It keeps in line with inflation (increase in credit). When that contracts (deflation) it falls back too. Do you remember that period ? I remember a lot of people losing their house, and prices dropping quickly in a lot of areas. I remember a drop from 240,000 on a commercial...

I think you would find that there was a major property crash in the late 80's. Prices did drop and stagnated back then.

Great points Lizzie. True, the price of household items have dropped. However don't forget that other things have increased. We now have mobile phone bills, internet connections, health care, private schools, and a lot of other things that were not part of household expenses 20 years ago.

When my parents bought their first house in the early 70's, they both worked. Same when they upgraded and required a mortgage. Two wage households are not new. They have around for many years.

hobo-joe hit the nail on the head.

How sure are you on that ? Helluva lot of "low doc" loans out there.

hobo-jo, Plot a graph that showed credit growth, and I am sure you see a strong correlation.

Not in the passed few years. Cash didn't mean much. Was inquiring a couple of years back about a property in my area. Told the agent, "I have X amount in cash". The agents more or less told me "who cares? When it goes to auction it will get a good price, and the bank will loan the money...

That graph is simply SCARY..........

Well done on your success. Some people prefer to take risks, and if things go there way, wreak the benefits. I, however, am a much more conservative investor. That's why I will never be truly 'wealthy'. Well off maybe.......but not wealthy. Word of warning though....circumstances...