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Double Bubble: California Compared to the United States. Vacancy Rates up Homeownership Down.

California, the epicenter of the housing bubble is facing difficult times. It is becoming rather apparent that this housing bubble has the risk of causing a worldwide recession. It is hard to imagine until you look at the facts how this bubble got out of hand so quickly. The foreclosure problem is now hitting squarely on the state. Last month for Southern California over 30 percent of homes sold were distressed properties. This rate is only increasing and will put future pressure on prices on the downside since first, we still have record inventory and it is harder to get a home loan. The latter part, getting a home loan is harder and for the right reasons. Folks simply do not have the incomes to support the prices in many areas. The only way they can purchase homes in these areas is with liar loans or sub-prime products but those are now largely absent and rightfully so. We are left with the reality that prices were fueled by egregious lending practices and lack of income.
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Original Source: feeds.feedburner.com/DrHousingBubble-HowILearnedToLoveSocal