I believe we are going to see a national housing price decline. It is already starting. National data from home builders and the NAR shows high cancellation rates, overbuilding, high inventory, longer days on market for the entire country. National home builder stocks are down 50%.

With a national housing bubble, I would not buy anywhere. And since I am renting, I would like to rent in San Diego. The only reason for us to leave would be unemployment.

Housing prices did not go up much in most of the country, but they will suffer “bubble like” effects due to exotic lending. Although houses in Omaha, NE went up with inflation the last few years, buyers overstretched into homes they cannot afford, with adjusting mortgages that they won’t be able to pay, and therefore housing prices will fall nationwide. I predict a 10-15% real decline in the next 2 years for the U.S housing market as a whole.