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July 7, 2009 at 7:00 PM #427206
Nor-LA-SD-guy
Participant

I would surmise that if you expect home prices to continue to decline into 2011 in the two biggest home markets NY/SoCal.

Being that The interpretation is that housing in SD in 1Q 2009 was significantly more affordable than in 1995 .

Then you would also expect the economy to continue to decline into 2011.

My guess the equation would look a little like below:

(bigger decline home values) == (bigger decline economy)

Just some food for thought.

I just don’t think you can have a broad economic recovery without at least stabilization in housing.