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Are We Seeing Housing Market Manipulation?

"Prices must absolutely correct back to where median income can support median price." This would come as quite a shock to metro areas of California, where price/income > 5 for decades while most of country is 3 to 4. How can this be supported? I suspect that most "owners" make minimal payments and are thus little more than a peculiar type of renter with rights to a capital gain (or default) when they roll over into another house priced with a gain built in.