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Home prices - the caution light is flashing
» Posted by Martin Weil on June 24, 2005
The end of an inflated housing market will likely lead to a recession after April 2006 that hits hard in Southern California, where so many jobs and so much economic activity are dependent on the real estate marketso say the folks at UCLA's Anderson Forecast as reported in the LA Business Journal. In its June issue, The Economist weighs in on the side of a global home price bubble. And the folks at Fannie Mae (site registration required) are warning of housing market busts in several regions Whether these well-regarded economic forecasters are correct or not, conditions do suggest that the signal for home prices in the US has turned "yellow" and that caution is in order for those who are over-leveraged and/or speculating in this asset class.
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