[quote=temeculaguy] I never understood the massive price increases of the bubble and I’m beginning to get confused about the massive decreases during the meltdown.[/quote]
No buyers!
The overwhelming majority of the population is either a current/former FB’er, unemployed (or about to be) or already tied to a mortgage.
I’ve said for years that the real scarce commodity is buyers, not land, when discussing RE investing.
The miserly Pigg’s like myself with cash, job stability and good credit are going to wait for the absolute bottom. I also prefer renting for the moment as I’m busy with enough projects that I don’t have time to tend to a house.
My prediction for the last couple years was to watch for 1997 pricing as a bottom, if it keeps dropping watch for 1989.
If its *still* dropping on the low end I honestly have no idea how far this is going to go. Maybe the IE is going to get plowed under, like Cramer has suggested.
