Victoria Heller writes:

> [Mork] But if a person owns a house and can hold ONTO it,  suddenly
> it
> appreciates like nobody's business.
> 
> [Heller] Not really.  Adjusted for inflation, house prices are the
> same as they were seventeen years ago.  A book was just published,
> "The Coming Crash in the Housing Market" by John Talbot - check it
> out
> at Amazon.com.  The scary part is that homeowners have been using
> their homes like VISA cards.  Mortgage debt is at an all time high,
> and home equity is at an all time low.  (More proof that tax policy
> influences behavior.)

I'm not sure where you -- or the author you quote -- are getting your
data.  But in the Twin Cities, home prices have escalated over the past
several years at a rate much higher than the inflationary rate.  As a
RealtorR  it's not unusual for me to see 100% or higher increases in
values for homes that sold back in the mid-1980s.  

According to one data base, (http://www.westegg.com/inflation/)
inflation from 1985 to 2002 has caused a $1.00 worth of goods to now
cost $1.60.

Per MLS data for the Twin Cities, homes that sold back only 10 years ago
sell for 85% more than their comparable prices today ... in your
community (North Oaks) the gain is 118% in just the past 10 years.

In comparison, the inflationary increase during the past ten years was
only 27%. 

Rick Mons
Shoreview

TEMPORARY REMINDER:
1. Don't feed the troll! Ignore obvious flame-bait.
2. If you don't like what's being discussed here, don't complain - change the subject 
(Mpls-specific, of course.)

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