Preaching to the choir on this one. All the data I’ve seen on RE prices in CA since 1960 gives unemployment the number one indicator of price direction. Anything over 7% means RE prices are headed down. Well, 9.3% and we’re only at the first year of a nasty contraction. If you think Mr Mortgage is right about the next wave of foreclosures, as I do, then this is a prefect storm for RE prices to really drop in 2009.
Agreed about college towns. Just gotta be able to make a decent living in them.
