[TrudyM]

Originally Posted by villagerjack

I guess if you are an owner, prices do not seem to be out of hand but if you were waiting to buy perhaps they seem speculative. Remember it is the monthly payment that drives sales and interest rates are still at historic 50 year lows and stick market has recovered.

No I don't think of it that way, the real cost is the alternative investment cost of the money. If you pay 50 thousand more for a place then the real cost is the income you are loosing by not investing that money. Borrowing the money instead of using your own is a leverage to invest issue and in my mind does not come into play when looking at the value of an real estate purchase. I always look at buying a house as an investment with hopefully a return as we never know what the future will hold. But that's just me.