A thorough and exhaustive analysis of how we got into this mess.
They conclude we have a lot further to fall. As a nation, housing is about 15% overvalued still. Regional variations might suggest certain bubble areas like San Diego are even more overvalued, even considering how far we’ve fallen already.
But they also suggest that we are likely to overcorrect and shoot right past “equilibrium” as others here have suggested.
Further, their numbers are not corrected for inflation. In short, our additional fall could be lengthly and severe.
Its interesting, ever since WWII, the US and other developed countries has used the IMF to lecture reckless developing countries that have mismanaged their economies. Now the tables are turned.
