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Oct. 4, 2006 - More on Affordability

Lest you think I'm alone in my opinions, Altos Research posted an article today about home affordability in California. Despite the significantly higher salaries when compared Arizona, specious arguments also are being made about the affordability of real estate versus the state's salary structures.

At the end of the day it comes down to this: either you believe in a real estate bubble or you don't. History tends to take the air of the bubble's balloon, as real estate prices rarely fall as precipitously as they rise. The beautiful part is we won't know who is right or wrong until later. Those who are sitting on the sidelines may be prudent. Or they may find they have missed their opportunity if the market starts to gain momentum again.

Is there a right answer? Absolutely. And we'll know it next year sometime.

(c) Jonathan Dalton, 2006 / Jonathan Daltons Arizona Homes