Housing prices have to ride in 100% tandem with inflation. Any more you have a bubble, any less you have a bust. For anyone who thinks a house is an investment, they should apply the same logic to milk, eggs and clothing. These are basic needs and as such can only be priced to meet the financial ability to pay.
A house can be bought on credit, but only if the price is three times your income, you can make a 25% downpayment, the amortization is at a maximum 20-25 years and the mortgage payment to take home pay is at 30-40% maximum. If you meet this basic common sense criteria, go ahead buy a home. But since you can rent a place for a fraction of having the burden of ownership who would possibly ever do so?
