Want to Know When Housing Has Bottomed? Here's How

Charles Hugh Smith reports:

That big house down the street that rents for $3,000 a month/$36,000 a year? At the real "bottom," that house will sell for about $250,000 (or less). That condo which rents for $1,200/month/$14,000 a year? $100,000, tops. And so on.

Can real estate decline in value? Yes. At what point does it make sense to buy real estate as an investment which bests other business opportunities? When it makes a profit on day one, after all expenses, not just mortgage/property tax/insurance. And what's a time-tested method of figuring that price? Seven times gross annual rental income.