IMHO: It’s going to take 3-5 years to get to the bottom and then prices will sit there for a while…………and I believe that prices could drop 50% in some areas. The median price will NOW have to adjust to the loans that borrowers can qualify for. Everything will adjust around that one, simple factor. If prices stayed where they have been, everybody who presently owns a home would have to stay in them for the rest of their lives and a tiny number of people would ever be able to qualify for a loan to buy one that was for sale. You can either stay in CA and rent for 3-5 years until you can see the true bottom or move out of state for a few years and watch what happens. (That’s what we did).
CA is a great place to live but anyone who didn’t see this coming had to be an ostrich with their head in the sand.
Good luck with your decision.
