San Diego Housing Market News and Analysis
Blast from the Past: Revisiting Moody's and Forbes' Colossally Inept 2006-Era Housing Forecast
Submitted by Rich Toscano on April 23, 2011 - 10:54am
Remember when housing started to falter back in 2006, and the mainstream economists' version of bearish tough talk was to predict that prices might just go up slightly less quickly in the future?
Tim of the always amusing Seattle Bubble blog recently dug up a prime example of that very thing, wherein Forbes magazine sternly informed readers:
"Get used to it--the seller's market is closing up shop."
"Now the question is more how hard is it going to land..."
Wow, that's some fairly bearish-sounding rhetoric. I guess that's why Forbes' teamed up with Moody's to determine that prices would... pretty much just keep going up. (Fun graphs after the jump...)
Here's their San Diego prediction as of late 2006. Note that prices are predicted to flatten out for what appears to be 3 months (even that probably earned them thousands of hate emails from the permabulls) after which it's onwards and upwards as San Diego proceeds smoothly into affordability oblivion:
Tim's recently put up a post revisiting the Forbes article and charting actual Seattle home prices over their predictions. As a favor to us San Diegans, he was kind enough to do the same for their San Diego chart. Click the chart for a bigger version. Thanks Tim! And thanks to Moody's and Forbes for the entertainment.
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