Median Price in Southern California is now down 8% from October 2006.
Bernanke's scheme to save the real estate market by destroying the dollar isn't working out as well as he planned. Toxic loans with no lending standards are not coming back to save the day no matter how low the fed funds rate goes.
Exotic financing was the only way most people could afford to pay $600,000 for a "starter home" in California and without that necessary component to keep the Ponzi scheme alive house prices naturally have to continue to drop in order to reach affordability levels that compare with average income.
Check out the full article here.
I think the amusement parks should create a new roller coaster for 2008 and name it simply, "Housing Bubble". The rides frame will be built to match the housing price graph from 2001 to 2008. I bet it will be a lot more fun riding it down then simply watching your equity vanish on paper.
Friday, November 16, 2007
Posted by Chris at 6:50 AM