Quote:
Originally Posted by elcheapoloco
Then I guess no one should live in cali. We should all move to Detroit.
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not really, but right now we all should be renting in cali because is renting is a cash business based on real income (what people can really afford).
as demand lowers, supply goes up (this is already happening, there are scarcely any fools left for the bootom of the pyramid and a lot of actual fools are foreclosing) prices will continue to drop. add in unemployement, additional housing supply entering the market from retiring baby boomers (huge portion of the poplulation) and soon to be rising interest rates from the fed to combat inflation, and you'll see a significant price drop to levels last seen before the bubble.
remember, it costs twice as much to borrow the money as it does to borrow the house!