Pheonix went up 55% in 12 months. Inventories are up dramatically (200% ish) in the last 60 to 90 days. Developers are offering big incentives to move product. Condos which do not have dirt being pushed yet are cancelled.
40% of the industry in Pheonix is building and selling houses. They don't make anything in Pheonix, their industry is building houses and selling them to each other.
Taken from Cali Assoc of Realtors: "California households, with a median household income of $53,840, are $70,480 short of the $124,320 qualifying income needed to purchase a median-priced home at $530,430 in California, according to the California Association of REALTORS? (C.A.R.)"
I'm not a physist or a nuclear engineer, but that is not "lets skip the twice a month movie to cover the mortgage" type of situation.
Here is a Fox quote (since that other was CNN, must maintain balance!)
http://www.foxnews.com/story/0,2933,178752,00.html
Hell, may as well quote a CNN too:
http://money.cnn.com/2005/12/15/real_estate/4questions_cashout_fortune_122605/Anyway, we can always compare notes in Sept 07 to see what was right (since there is no exact science to predicting markets). We simply try to read tea leaves.
It's a good subject though to get differing points. And it deals with big bucks, so that adds something.
