An honest question SoCal real estate is at 2003-2004 prices at this point. It looks like a good deal huh...but where are the jobs???
bubble theory suggests that it bottoms at the base where the bubble began. So I'd say about the year 2000 level real income has DROPPED since 2000, so it may drop even lower but it will do whatever it's going to do
the other question is, when will prices return to their peak? i say 15+ years for the core metro areas and 25+ years for the less desirable, overbuilt, outlying areas.
I guess alot has to do with the possible tidal wave of inflation next year and the severity and duration of this financial crisis. I'll guess 8-10 years for core metro and 12-15 years for the out areas.
http://www.usatoday.com/money/indus...rtgage-foreclosure_N.htm?loc=interstitialskip have a look at these stupid people: WHAT were they thinking? Have a heard of a foreclosure auction? W/ that kind of money, that's more than enough to BUY an entire house. For auction like that, I've seen $49,000 for a good house
home prices were flat from the public start of the s&l crisis for 10 years. as i traded and as a landlord through that time; i can confidently agree with your post. between unemployment and the excess over the last one; once prices do bottom; they will stay there for a long time. just study the data from that time.