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Old 06-16-2004, 07:16 AM  
FlyingIguana
aspiring banker
 
Join Date: Mar 2002
Location: toronto
Posts: 10,870
Quote:
Originally posted by scoreman
Very true, especially in areas where there is no new land to build upon. Demand will always be consistently strong in those areas to keep prices stable.

One factor to also consider is that in many areas housing costs dramatically escalated whereas wage increases for the same area only increased a fraction. Historically when this happens, at some point housing begins to get to far ahead and it cools for a time period. This gap between wage and housing is very pronounced in many areas of the USA, and it could lead to a stagnant market with little or no appreciation for quite a few years.
wages are starting to increase, but enough to offset the liquidity bubble, i doubt it. could be an interesting 12 month period coming up.
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