patrick.net

Oakland down -20%?!

Huh?

I don't see the slightest sign of housing prices declining in the bay area. Flattening, sure... We are at record high levels now and home prices vs salaries can only diverge for so long...

The new average is a minimum of 10% appreciation for home prices per year. Most years will be 20-30% appreciation, but you'll have your down years in which you get only 5% or so. The reality is that it will never be 0% or below. That's so last century.

BayArea says

I don't see the slightest sign of housing prices declining in the bay area. Flattening, sure... We are at record high levels now and home prices vs salaries can only diverge for so long...

There are price cuts coming in on many houses, smaller ones for now, but they may have to cut more. Actually I see housing doing worse than the general stock market going forward, simply because many have been priced out to buy, but they will leave their 401K programs in the market. Still it would have to decline quite a bit before one could talk about a bursting bubble. And the Fed may stick with ZIRP if there are any hints of a possible collapse.

Again, I haven't seen any evidence to support that housing prices are falling, it's just not happening