Re: housing market correction coming?
[ QUOTE ]
The good news is that (in his opinion) some of the hotter markets like LA & the SF Bay area will be a leading indicator for the rest of the country if a RE correction does hit. His thought was that there would be a lead time of about 6-12 mo. from the time LA RE starts sliding south to when we will feel it here in Seattle.
[/ QUOTE ]
some areas will start sliding ahead of california, because california is also a desirable place to live, so the bubble accounts for only some of the growth. for example, DC Metro is already sliding. many (myself included) think that particular area is almost all housing bubble. there's population growth, but it is my understanding that the same people who were renting a loft apartment with three roommates only a year ago are now speculating by owning 2 or 3 houses and renting the rooms in order to make the mortgage payments. that's practically the definition of bubble. also, 6 months ago a house would be on the market for an average of 1 week, and is now longer than a month.
draw your own conclusions.
|