Saturday, November 10, 2007

$1.4 Million By 2016

Now that's comedy.

"Long-time market watcher" revises previous estimate of the median home price in Orange County, CA reaching $1.4 million by 2014...to median home price reaching $1.4 million by 2016.

Assuming plausible expected wage and inflation growth, this is nuts.

His prior prediction:




Given plausible inflation rates let's say in real terms he's talking about the media home price being about a million in 2016.

Generously, assume 10% down ($100K) and 6% 30 year fixed rate.