Just another perspective, from a former So Cal mortgage broker, from his post today,

“It is going to be interesting to see what happens when 18-25% of the 9 trillion dollars of outstanding mortgages adjusts in 1 year.” That’s right, the outstanding mortgages in the US is $9 trillion, and $1.5 trillion is set to adjust next year.

Anytime you doubt this housing market is going off a cliff next year, come back to that little fact. Then, remember the new lending guidelines released today (?), which will eliminate the loans that allowed 70% of purchases in San Diego, and about 20% nationwide. Even if sales doubled today, it wouldn’t matter, because prices are still falling and the big time bombs are set and ticking.