Yes, global central banks keeping interest rates at 5,000 year lows for nearly a decade has created a fat bubble. Again.
In the 90's...a million bucks would get you a mansion/mini-castle, Actually only $300,000...that was the winning bid in the movie for a place in Austin, TX But a million bucks now is just an average upper, middle-class home,
My parents bought their home, the most expensive in the town for < £5000 in 1963. Way over a million now. Population growth, prices will rise until this fails. If you look at growth figures under XYZ politicians/parties, it is always up. It is not who is better at managing the economy but who either by competence or incompetence, interferes with it less. Its not brains, parties claiming they drive growth hahaha. Tell that to bacteria. It is going to grow until...
Well there is this aspect too: Principal borrowed: $300,000 1996 mortgage rate: 8% Resulting monthly payment: $2,201 Principal borrowed: $500,000 2016 mortgage rate: 3.6% Resulting monthly payment: $2,201
True, mortgage rates are variable however inflation is built into the system so actual rise in value is more complex. The Donald's "small loan" of $1m (around 1968?) becomes $6,896,752.87 equivalent by 2016.
Seward Park is nice expensive old money neighborhood. However, to get to that house or the park, you have to drive through not so much nice Area, more like a war zone especially when it gets dark! So personally, I will not live there and most definitely not pay a million dollars for that house!