Tuesday, June 21, 2005
Housing market tumble forecast / Economists see bubble bursting by late next year -- Kelly Zito, San Francisco Chronicle
Housing market tumble forecast / Economists see bubble bursting by late next year: "A long-predicted correction in the high-flying housing market could steer the economy into a recession as early as late 2006, according to a forecast to be released today.
Economists at the prominent UCLA Anderson Forecast have anticipated a real estate downturn for a couple of years, but they have stepped up their warnings in their latest quarterly report.
The reason? Home values simply have flown too high, too fast. In California, for example, home prices have vaulted 70 percent in the past five years, compared with 55 percent in the mid-1970s and 45 percent in the late 1980s."
Economists at the prominent UCLA Anderson Forecast have anticipated a real estate downturn for a couple of years, but they have stepped up their warnings in their latest quarterly report.
The reason? Home values simply have flown too high, too fast. In California, for example, home prices have vaulted 70 percent in the past five years, compared with 55 percent in the mid-1970s and 45 percent in the late 1980s."
