I'm sure we all knew this would happen about 4 years ago. I get so frustrated when all of the people "in the know" are so ignorant. Austrian Economics = Common Sense.
"HONG KONG (MarketWatch) -- Merrill Lynch forecasts nationwide U.S. home prices could decline 25% to 30% over the next three years, as new supply and weak demand weigh on the market. "This sounds dire... but would only reverse part of the unprecedented 130% price surge from 2000 to 2006," wrote economist David Rosenberg in a research note released Wednesday. Rosenberg added the S&P 500 may decline an additional 20% to 25% to breach the 1,100-point level if the market follows historical precedents at times when the U.S. economy is in recession. "
http://www.marketwatch.com/news/story/merrill-lynch-says-us-nationwide/story.aspx?guid=%7B113721E5%2D3D7D%2D4938%2DB5E1%2D44401BD02AA4%7D
Why do you say "real estate bubble"?
I thought the Fed doubled the money supply over the last 7 years. Ceteris paribus house prices should also have doubled.
Here in Florida, since 1995 and until the recent downturn, home prices have at LEAST doubled in most areas, tripled in quite a few and in some locations have even quadroupled.
Tell me about it I live in Massachusetts were the housing market is awful, meaning homes cost way too much. Of course our over the top zoning laws (trust me they are a nightmare), union supported government building regulations, and various local property taxes certainly dont help. Overall I am saving up to buy a house as the prices inch lower and lower but I doubt it will be in this state.