Housing thoughts

Housing is vastly overpriced. A house is fairly priced when you can buy a home, then rent it out and the rent will cover all costs including upkeep, damage, insurance and taxes. You can't do that today -- you can't even get close.

The housing boom topped around August 2005. Historically, it take about two years after a housing top before the big trouble hits. This suggest that we'll see the housing agony hit around mid-2007. The market should start discounting the housing situation fairly soon.