I think most of the feedback here reflects the bias of this board. I’m a big housing bear, but I just can’t see 50% declines. That would put the house I am in at 250K versus a peak value of 550K (currently worth 500K).
Lets talk fundamentals…Lot of focus around on the median income…There are a lot of DINK’s and wealthy individuals in this city. I don’t recall the percentages of owners or renters in the area, but lets say it’s 50% and median income is 50K…that would imply that the median income of a housing owner in SD is probably nearing 100K. I live in RB where 90% are owners and median income is near 100K(median excluding renters is probably 120K).
At 100K, you can easily support the mortgage on a 350K house. I don’t see the decline going beyond 30% from today, and I think 20% is more likely.
If it hits 50%, unemployment will be above 10%, and we’ll all have big issues to worry about….yes, that’s only ’02 or ’03 prices.
