How Low Will Home Prices Go?
DR. HOUSING BUBBLE takes up this important question here.
The answer is home prices will fall significantly in California. Home prices at 10x median annual income were not sustainable. Given the fact that high unemployment will also become a significant factor, home prices will fall to about 2.5x annual income. This factors in record low mortgage interest rates.
But what happens in cities in California where the population is declining?
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“The rich get rich and the poor get poorer”……it’s the same old story….and the cycle continues and it will cycle again….and again…”If one believes it, one will see it”….so believe ….ask Santa and think “pink” or whatever color it is that could make you optimistic again.
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