You Know Housing Sucks when the San Diego Paper is Pessimistic

So much of their revenue of all papers comes from realtors ads that they are universally cheerleaders for real estate.

Just a few months ago, they said it would be over in the 2nd half of 2007, now it's "Well into 2008".

I was in the Massachusetts real estate crash in the late 1980s/early 1990s. It was local, and relatively small.

It took 2-3 years to get back to normal, and the price drop was far less than we will see here.

This will be 5-10 years.

Subprimes, affordability cited for industry's woes

By Emmet Pierce
UNION-TRIBUNE STAFF WRITER

June 12, 2007

The implosion of the subprime mortgage market is likely to prolong the national housing slump, Harvard University researchers said yesterday in their annual report on the state of the nation's housing.

“At a minimum it will slow any recovery,” said Nicolas P. Retsinas, director of Harvard's Joint Center for Housing Studies, which issued the report. “Add to that the overbuilding and the inventory correction and you can see why it appears, particularly for the new-home market, that this slump will last well into 2008.” (emphasis mine)

Housing-industry analysts say the riskiest subprime adjustable-rate loans were made in 2005 and 2006. As they reset at higher interest rates through 2008, they are likely to fuel the current surge in foreclosures.

As lenders move to tighten loose credit standards and prevent defaults, it will become harder and harder for subprime borrowers to refinance into more affordable loans, Retsinas said.

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