Rationality will prevail eventually: We'll get back to 3x annual income for the simple reason that the fake appreciation due to easy loans is history.
The thing I fear though is the in-between period. Many folks will hold on thinking that the downturn is "temporary", so prices will stay elevated for a few extra years. As a consequence, you'll see doubling-up and tripling-up in housing that normally would have held only one family.
The thing I fear though is the in-between period. Many folks will hold on thinking that the downturn is "temporary", so prices will stay elevated for a few extra years. As a consequence, you'll see doubling-up and tripling-up in housing that normally would have held only one family.