LOOKOUT BELOW!!!

I once heard a picture is worth a thousand words. Well, look at this one.

For those of you that haven't spit out your coffee on the computer screen, yes that is correct. It is the current West Palm Beach Housing Market Index, or if you might say, lack of affordability index. The average home sells for just over $400,000 ( down from $421,000 in November 2005).

But wait.... houses are still about 100 % higher than the mean. OOPS! An article in CNN(http://money.cnn.com/2006/02/03/real_estate/house_price_predictions_for_2006/index.htm) lists our area as (cough)ONLY up 31.6% in value in 1 year.

But what about the impending "bubble?" According to this article, prices are forecast to go down a mind numbing .3%. YES that's right. ... .3%. I must assume that is after they have gone down from $421,000 to $400,000. (about 5%).

So, don't worry folks. Plunge your lungs out. Buy that 2/1 in crack town next to the Airport for $300,000. Mortgage your existing house using a 125% I/O and buy 5 more pre-construction apartment conversions. Prices won't come down. They are running out of land. You don't want to get priced out. If you don't buy now you will never afford a house. Bubbles, shmubbles. Not gonna happen. See? It says so right here on CNN.

Comments welcome as always.