Bubbles!

Some of the ten year graphs on yahoo real estate are getting pretty impressive. The bubble has not only burst, but in many cities it is closer to the bottom, than the top. Expect the end of the bubble to equal the inflation adjusted start of the bubble in parts of the country where income did not change dramatically. Nothing changed that would cause people to willingly spend a greater percentage of their income on housing now that it has become clear that housing is not a good investment. The 2000 housing price is the best predictor of where houses will be in five years.



San Jose


Merced


Fresno