sdr: One of the things I would challenge, but specific to the California market, is the impact of unemployment on the numbers.
We’re hearing about this recovery being a “jobless” recovery, which to me sounds like so much bullshit, but I do believe its hard to make the case for a rebound in housing without solid employment.
Yes, I realize that you didn’t call this a rebound, but you also don’t seem to buy into the possibility of a second leg down (which I do). Given the overall bleakness of the numbers (not just unemployment), and, more importantly, the distinct possibility that things might get worse before they get better, don’t you think there’s a chance there might be another fall in prices? Yup, that is a broad-brush statement, but I’m looking at the macro picture here in California and factoring in the declining health and wealth of the state as a whole.
