I think that the next two years are going to be very tough for housing. More foreclosures are looming in the pipeline and growing. Unemployment is 8.2% to 11.00% in CA depending on how you calculate it. These two things alone are disasterous for housing prices.
Just look what has happened to the various asset markets in the last 8 months. $30T lost in equities, 25% lost in housing value. Unemployment reaching multi-decade highs. All of this and the recession is not quite a year old. Earning US$ is getting tougher and credit is drying up, this will strenghten the US$’s that exist as long as the govt does not go completely insane with their spending. But look what they’re up against in money destruction! It’s kinda like trying to kick start a 747.
So, yes, I am hanging onto US$ and watching the show. It’s a once in a life time thing for most of us.
