grs44

Think Housing's Bad? You Ain't Seen Nothing Yet

We have been here and done this before, with housing dropping in California in the 1990's. I used to live in Silicon Valley, so I know the market a bit, and it is highly inflated. One house I owned was 1600 sf, 3 bedrooms, 2 baths, with the requisite small yard, and it is now worth over $800,000? If you look at average prices, and household incomes, you have to have a household of income o $190,800 to afford an average house in California.

Oh, and the average household income is only $53,600. The housing bubble will burst, which is why buyers are simply waiting for it to happen, and sellers won't reduce their prices to reflect reality, that and sellers will have a mortgage worth more than their house.

This housing mess is going to take a few years to straighten out. In the meantime, if I owned a house in Calfornia, Florida or any other inflated area, get ready for a very rude awakening.