The real estate boom of recent years caused California home prices to soar to dizzying heights. Now that market has cooled, housing prices are leveling off or even dropping after years of growth. Foreclosures are up across the state, particularly because many recent home-buyers have financed their houses with “exotic mortgages.” Buyers counted on a growing market but now they may be left with homes they can’t afford and no way out.
The recent real estate boom has meant wealth for more than just homeowners and realtors. Homebuilders, contractors, stores that sell home furnishings and many others also depend on a strong real estate market. The weakening real estate market may even have the potential to push the whole economy south.
Correspondent Judy Muller looks at the real estate market and the possible economic fallout that lies ahead.
- Realty Trac, offers data on foreclosures
- California Association of Realtors
- “Data on Homes Causes Jitters”, Los Angeles Times, September 26, 2006
- “Nightmare Mortgages”, BusinessWeek, September 11, 2006
- 2007 Housing Market Forecast, California Association of Realtors
- “California’s impossible house prices,” a blog entry by Associate Producer Hal MacDermot in California Connected’s Newsroom.
April 17th, 2007 at 3:43 am
Although it was disheartening hearing about the state of the California real estate economy, it was an informative and encouraging hearing about it. As a former home owner who chose to sell during a down time of unemployment, I am encouraged to re-enter a market that I thought I would never be able to experience again in California.
One of the statements that I believe a realtor made was that people do not want this information reported due to the belief that people will be sent into a panic or be in a state of fear by hearing what is occurring with the economy. I believe that it can provide hope and encouragement for many (myself included) — as it is said the truth will set you free.
Thanks for informing, I enjoy your show and am glad that there is a website since I am able to watch the show at 2AM.