Peter Morici, an economist at the University of Maryland, said reduced inventory of unsold houses may mean “frustrated buyers are removing their homes from the market.” Morici said that major price adjustments will be needed to bring the market back into balance.
“The speculative frenzy of recent years is causing a major adjustment, and the happy talk of Realtors is prolonging the process,” Morici said. “The absence of realistic analysis about the extent of overvaluation is characteristic in an industry that sees nothing but an upward progression for values, but houses like any other asset can be overpriced. . . . Things are likely to get worse before they get better.”
*Note – I would have personally modified Mr. Morici’s last line above, to read: As far as San Diego and most of the other ‘bubble’ markets, Things are likely to get much, much worse before they get better.                     downtown San Diego real estate agent  Â
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I’m not sure; In 2005 most of the commenters on the real estate market were saying there’s no bubble and our mini boom would never end, this is a sure sign that an end is fast approaching.
Jeff
San Francisco California Lawyers
Homes take 18 months on average to work through the foreclosure process.. Imagine what foreclosures will look like 18 months from now!
Matthew
Los Angeles California Bail Bond Services