No we didn't break down and buy a place. It's much worse than that. Apparently it is the complete and utter fault of Ms. HHV and I that this market is now balanced and has returned to historic price-to-income fundamentals.
We've heard a lot in our house hunt journey, but I think we can officially say we've now heard it all. You see with entry level homes at around $400K and our annual income approaching close to 25% of that (believe me, there's no "hey look at how great we are" in that statement) we can now buy an entry level home at the historical norm of 4 times annual earnings. And if we can do it, anyone can. No sh&t! That's what I was told. No correction looming because you FTBs can buy again with confidence that your "investment" has no where to go but up.
What a crock. This nameless/shameless person went to great lengths to "explain" how wrong we are to hold firm to our belief that this market is beginning to correct even as I write this.
"Don't say I didn't warn you, but you'll be sorry you didn't buy now while you could, because pretty soon you'll be priced out forever."
I'm getting pretty good at not getting baited into the trap anymore. After this individual finished berating me for my "silliness" I simply walked over to his laptop and showed him this graph. (H/T Mohican) Then I said:
"We don't make an average income. We make an above average income. We won't buy an average house. Because we can't. But we can buy a neglected dump "with good bones" and with a dumpy "mortgage helper." For too much. But we won't. Because, well, how can I say this politely? We won't pay too much for a crap house in a crap neighbourhood because history has always shown that people who do buy at the market peak, end up needing to live there longer than they ever wanted to while waiting to just break even again."
The rest of the conversation went like this:
"it's not the peak."
"yes it is."
"no, it's not"