"Crushing Hopes of an Imminent Turnaround"
Here are some choice quotes from the print edition of the article:
Like a brick falling from the top of the Transamerica Pyramid, national and local home prices are rapidly accelerating on their way down, crushing hopes of an imminent turnaround.He was shocked, shocked!
The cost of a typical Bay Area home plunged 17.2 percent year-over-year in February, compared with 13.2 percent in January and 10.8 in December...
"Prices have a lot of room to fall," said Patrick Newport, an economist with Waltham, Mass., research firm Global Insight Inc. "We could see some really big drops."
Stephen Levy, senior economist at the Center for Continuing Study of the California Economy in Palo Alto, said the early, enormous price declines in areas like Stockton and Fresno are filtering into the Bay Area.
"Even though we don't have the high foreclosure rates, housing is a market and prices here are connected to prices in adjoining areas," he said.
Michael Carney, director of the Real Estate Research Council of Northern California, said he was "shocked" that the Bay Area number fell as far as it did, but echoed Newport in saying the accelerating decline means the worst is to come.
No shock to us. So far it is, for the most part, going according to the script. And yes, the worst is yet to come... we are still waiting for Alt-A resets which are our time bombs. Furthermore, now that the "low end" is cratering there is room for that upper end to not just crack but cave.
And what about all those sellers who have taken their houses off the market, waiting for a better market environment? Unless you are willing to wait many years, you are missing out on the best it is going to get for a while.
Perhaps it is time to re-visit that prescient The Economist article from June 16, 2005. You remember, the one that featured this cover which seems so appropriate now:
And my thanks to reader Lisa for flagging this IJ article:
Marin Assessor Joan Thayer told county supervisors Monday her department could be overwhelmed if the number of residents seeking reassessment of their homes continues to rise. Thayer expects as many as 1,000 of Marin's 74,750 homeowners to request a reevaluation of their home's assessed value by the end of the fiscal year in June - a figure she said had "doubled and may have tripled" in the past year.And I must say, isn't it about time that our local media stops with the 'well, at least it isn't as bad here as it is elsewhere' misdirection?