patrick.net

Los Angeles is on the list (no surprise there) of cities that will have even more housing declines due to income/price ratio being way out.

Seems like we are on every list for one reason or another!

Time Travel back t0 1998...seeds of the boom and than bust.

http://www.jchs.harvard.edu/publications/markets/SON_1998.pdf

In addition to a buoyant economy, the overall housing industry owes its enduring vigor to innovations in mortgage finance that have helped not only expand homeownership opportunities, but also reduce market volatility. Under market and regulatory pressure to make homebuying more accessible to low-income and minority households, financial institutions have revised their underwriting practices to make lending standards more flexible. In the process, they have developed several new products to enable more income constrained and cash-strapped borrowers at the margin to qualify for mortgage loans.

Lenders first began offering adjustable-rate mortgages in the early 1980s when interest rates climbed sharply (Table A-5). With initial rates significantly lower than those on standard 30-year fixed-rate mortgages, adjustable mortgages accounted for nearly two-thirds of all home loans originated in 1984. Although the one-year adjustables made ownership initially more affordable to a larger pool of potential buyers, they also passed on the risk of interest-rate increases to borrowers each time the mortgage reached its annual anniversary. In the early 1980s, though, borrowers viewed this as an acceptable trade-off because interest rates were skyrocketing.

Now that both mortgage interest rates and home price inflation are at much more modest levels, financial institutions are offering a growing array of adjustable-rate products to meet the changing needs of both businesses and households.

PasadenaNative says

Seems like we are on every list for one reason or another!

I have yet to see a list our city makes with something positive on it.