Hyman

Pulse of the U.S. Housing Market

The problem is that home prices just got way out of sync with incomes. The reason prices soared was that almost anyone with a pulse could get zero or low down no doc loans. Now economic reality has set in, and home prices will have to plunge down to the levels that finally meet the incomes of the local workers. Prices will drop down at least 35% to around 2001 levels before we see any real stabilization.