Bicoastal Housing Recession Forecast By UCSD Economist
Ross Starr, a UCSD economist who watches the local housing market closely, said a “bicoastal housing recession” has developed in previously hot markets, including Southern California, South Florida and Las Vegas. He cited sagging home-builder stocks, construction cutbacks affecting employment and lower new-home prices, although the new home median here last month increased from September. “The bubble’s burst,” he said. “There’s a big difference between that and a U.S. recession but real estate is a big piece of investment and it’s investment that drives changes in gross domestic product. So the conventional view is the U.S. economy will continue to grow but will grow real slowly because the housing sector is contracting.”
For San Diego, Starr said the year-over-year pricing trends confirms his thoughts about a localized housing recession. [tags] housing, housing market, recession, San Diego housing, San Diego, San Diego real estate[/tags] San Diego real estate agent
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In my humble opinion the San Diego real state market is headed for a HUGE crash much
in many ways resembling what happened in Japan during the 90’s. Our
stock market followed Japan’s lead 10 years later our housing market
followed theirs 10 years later. If you put a chart of the Japanese
real state market from 1980 to 2000 it mirrors the real state market
in the US to a T from 1990 to 2005 and just around here is when theirs
went flat.
I’m renting and waiting to scoop up at half price, just like Buffet. 🙂
Seems there should have been more government regulation and tighter qualification for subprime mortgages in order to prevent what we’re now facing.
Cathy
San Diego California Real Estate