We are constantly hearing wailing and gnashing of teeth from the left coast, Florida, Arizona, Nevada, and the northeast about how far housing prices have fallen and their fears that they may fall further
According to the indices, home prices in 10 major metropolitan areas fell by a record 17% from a year earlier. In 20 major metropolitan areas, home prices dropped 16% from a year earlier — another record drop.
The article goes on to say how far prices have dropped in some of the markets that were the hottest just a few years ago. Las Vegas dropped 28% from June 2007 to June 2008. Los Angeles 25%. Miami 28%. San Diego 24%. San Francisco 23%. Will they drop more?
I should hope so. It is not healthy for a city's housing prices to be so high that middle income people and young people cannot afford decent housing. When that happens, it turns the community into a third-world type of situation with an upper class and a lower class, but not much in between.
And the young people will be forced to move to the red states like Oklahoma where they might....*gasp*.... end up voting Republican. We can't have that, can we?