Thanks for posting. Great video that explains the state of the RE market very well, in simple terms, that most viewers can understand. Every head-of-household should watch this video.
I can picture the FBs in denial in Carmel Highlands, Del Sur, 4S, San Elijo, etc…. Ain’t gonna be pretty.
I have no sympathy for these people. For example the woman who bought the $500k house. She has a $2800 payment starting out on her mortgage and they say she makes $60,000. The equates to $2800/month after taxes (no factoring in interest right off). She couldn’t afford it to begin with. Then on top of that what does she have parked in the driveway? A big shiny new SUV. She deserves to lose her house and end up in a one bedroom apartment. I have no sympathy, it’s people like this that have made the market very tough for us reasonable people.
Did Thornberg say declines of 15-16%? That’s way too pessimistic considering houses went up 130% in the last 5 yrs. I say minimum of 40-50% declines to revert to mean.
In the past prices have reverted to mean, there is no reason to believe that “this time it is different”.
.
