I’ve been talking about the upcoming storm in the housing market for a while now. Here is another article in the LA Times going talking about it. There are some amazing figures and quotes in here like this one:
“Prices are falling everywhere,” said Christopher Thornberg, a former
UCLA business professor who is now a principal at Los Angeles-based
Beacon Economics.In recent years, the housing market had been propped up by the
widespread use of home loans with low introductory teaser rates –
allowing prices to outpace income growth, he said. But with those
easy-credit loans all but gone, values are coming back into balance.“People just don’t have the income to support these prices except
with crazy mortgages — and now the mortgage money is going away, and
people are walking away from their homes,” Thornberg said.
See Worst August for home sales in 15 years for the whole story.