The Wisdom (Madness?) of Crowds.

Nice post in Philadelphia Inquirer about expectations of real esate. 25% of Americans are anticipating 10% a year of appreciation in their house. Only 3% believe there will be a decline. I have one small question for the real estate bulls. What are your kids going to buy? If your house appreciates 10% at infinitum, and income growth is effectively 0%, that is not a recipe for your children to reach the American Dream. That is why I say this is really a nightmare. Everybody is looking at the houses through some bizare prism glasses (or bloated fun house mirror). When the reality will hit, Pain! Pain! Pain!

10%PerYear

Another link to same article:

www.dailynewstranscript.com/localRegional/view.bg?articleid=64875&format=&page=1