Drop in Housing Values Could be the Factor that Leads Us Into Recession

As hundreds of billions of dollars worth of loans sold to so-called “subprime” borrowers — historically those with shaky credit histories — are now “resetting” to higher monthly payments, many of these borrowers are facing default. And as lenders foreclose on these loans, homes are re-sold quickly, creating further downward pressure on housing prices. Median home prices this year are expected to post their first year-over-year decline in decade.

All the 'industry' sources are soft-pedaling this value drop. Their statements are eerily similar to how they pooh-poohed the housing bubble red flags many old timers like myself, said spelled trouble starting in 2002 thru 2005.  What do you think? Please use the comments link below to give our readers your opinion. [tags]real estate market, housing market, real estate values, California real estate, San Diego real estate, real estate bubble, housing bubble, housing values, subprime loans[/tags] San Diego downtown condominiums

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