Here is my personal prediction for Southern California Real Estate. Bear in mind I am an art teacher, not a real estate professional.
I think that in the next 3 months the public is going to wake up to what we on this board already know: real estate is in big trouble.
There will be a “reverse panic” that will take a year or so where everyone who can will dump real estate. It is going to be harsh, so sure a Tsunami works for me.
Yes, there will be an accompanying recession etc.
Then, a few of the underlying factors will kick in. Foreigners will buy more of California with their stronger currencies and population growth will continue to stoke demand. This will lead to some stability and there will be a long period of sluggish, mediocre, relatively stable prices.
A whole generation of Californians will have learned that the idea that “real esate never goes down” is painfully wrong.
