Cold hard truth that is an assumption not supported by any data outside the wishful thinking of this Democrat activist with tenure desperate for some validation of his statist economic theorys. I see the LA Times have a Paul Krugman clone.
” Probably 25% to 30% from their peak.”
Oh, they’ll fall from peak...might take a little longer to shake out, with ‘08 an election year...
check out data tab: (for peak)
http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp
Prices have already fallen that much in some places in CA....
“assumption not supported by any data outside the wishful thinking of this Democrat activist “
The data he is using to back this up is his thesis that housing prices can’t forever be sustained at 60% of median incomes.
Housing prices have doubled since 2002 and incomes have only risen about 15%. That’s what a bubble is — pure speculation, not market value.
His thesis makes sense, given that the pendulum will probably swing too far to the downside, as corrections usually do. So a fair market valuation would probably be somewhere in the 2002 price range and then when the market recovers it will start going up again.