I like the article because it looks at our housing situation on a national level. The interesting aspect of Professor Shiller's comments is "U.S. house prices have still only fallen halfway to fair value".
I am not a proponent of the San Diego market reaching bottom like many are saying. However, fair value IS and HAS been determined by the marketplace. This is true for any and all businesses that are effected by supply and demand and how that graph effects pricing.
People forget the S&L collapse of the 80's, the recession, run away inflation and 17% fixed interest rates. It is completely possible we will get there again, and inversely the same as well...that we will not. My data shows we do have further to go in San Diego, perhaps a lot.
The most important thing for people to remember is:
1. The Affordability Index is up almost 100%, hence, more people are buying.
2. Every market has local effects that trend separately from the national statistics.
Great info, thanks for putting it out there. Time will tell.
Mark and Kari Shea
San Diego Real Estate Experts
REO, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate