Lot of MSM attention now. The lead story on NPR's "Marketplace" radio show today is "Bigger hit expected from housing market woes".
Some analysts are now saying publicly what others have been thinking: There's got to be a wider economic impact before the housing slump is over. ...
Economist Joel Naroff says prices need to drop more. He says many builders have brought their prices down, but owners of existing homes are still holding out for more than they can get.
JOEL NAROFF: "I call this the "seller's denial" segment of the housing cycle. Where sellers do see that they're having trouble selling their homes, but they're just not willing to drop the price enough where those homes will actually be bid on."
Subprime buyers helped inflate home prices. With access to cheap loans, borrowers could buy at prices they otherwise couldn't afford. With those buyers out of the picture, Naroff says affordability is much more important. ...
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I'm tired of the prevailing myth that the west side is wealth filled and gentrified so much it's immune. It's got older housing stock and has traffic and parking problems galore.
Unlike the consistency of the burbs it has pockets of urban blight mixed with million dollar + areas all within a few city blocks of one another. How can you say that's desirable?
The real problem lies in the fact that the true macros of the region do not support housing 9-10 times the median income plain and simple. It's not rocket science and the triple price increase in the last five years is not sustainable. Unless you want to dismiss the majority of the middle class. But that is a political time bomb on it's own.
Yes, it's true there is alot of wealth but if the middle class dies in California then business has no market. It's sticky on the way down and L.A. may feel it last but be assured it's turn is coming too. If you look at the country as a whole the cost of living here is way out of whack. I know because I've been living in south and my dollar goes twice as far. California need to regain sanity or perish..
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