"Housing prices in Southern California continued their record-setting decline in May, falling 27% from year-ago levels, as lenders continued to depress median prices by dumping foreclosed homes in rising numbers, according to DataQuick Information Systems. Housing prices have now rolled back to early 2004 levels, DataQuick reports" (italics ours)
Or…..
"Buoyed by a 27% drop in housing prices from a year ago and reflecting a buyer’s market, potential first-time buyers and investors are hopeful that this decline is further evidence of prices falling back in line with historical trends."
Story here.
Monday, June 16, 2008
How's Your Glass?
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1 comment:
An engineer would say that your glass is twice as large as it needs to be. So it goes with these housing prices. The market is effecting a correction after a classic bubble. These phenomena have been observed since the 17th Century tulip bubble in what is now the Netherlands. I am only surprised that people are surprised. Just more reason to manage one's debt wisely.
If you could afford your $300K mortgage when your house was worth $600K, you can still afford it when your house is worth $400K. The only thing to do is wait it out; but don't forgot to ask the county assessor for a re-appraisal, so at least you can lower your property taxes in the meantime.
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