What real estate “recovery” are economists expecting to take place when?

Joe.R: What real estate “recovery” are economists expecting to take place when?
the average home in Brooklyn, New York is $ 500,000, yet the average person’s annual salary is only $ 40,000?
Do these fools actually expect houses to get EVEN MORE expensive??? Who’s going to buy them, Warren Buffet and Mike Bloomberg?
It is sickening enough that home prices DOUBLED (!!!) between 2000 and 2008 (when was the last time my salary doubled?), and now they want more “recovery”? What’s wrong with these out-of-touch, clueless idiots?

Answers and Views:

Answer by Steve D
Those “idiots” as you call them look not just at one small section of teh country, but rather at the entire national economy. In case you have not been following the economic news for the past few years, average housing prices across the United States have declined up to 50% in many places, and in some places even more. At the least, the vast majority of homeowners have seen the market value of their houses decline a minimum of 25%. The fact that Brooklyn may have escaped relatively unscathed when it comes to home prices is relatively irrelevant when discussing the nationwide housing market.

When the housing market touches bottom and a general recovery starts is anybody’s guess. No one, however, expects the rampant housing inflation that was seen during the late 90’s and early 2000’s, rather a more moderate and sustainable 2 to 5% appreciation on an annual basis would be expected.

Answer by Spock (rhp)
houses in all of NYC are extremely expensive due to a combination of building restrictions and rent control, coupled with spending transfer from auto related categories. [i mean, why own a car, have payments, buy auto insurance, pay for upkeep and repairs, etc., when the cost to take the subway everywhere you really need to go is only $ 60 a month?]