One classic trait of bubbles is the feeling among the bubble asset holders that they'll be able to get out in time
Most times the crash comes to quick and too severe - think 1929, think tulip bulbs.
However, with housing, it's even worse, as it takes many months to list and sell a house.
Especially when there are NO buyers.
Here's the POP in San Diego. Memo to San Diego homeowners: It's too late to get out now. You'd be lucky to sell at a 30% loss from the top.
San Diego County resale house prices tumbled last month by the biggest number in 18 years of record-keeping and contributed to the smallest year-to-year rise in overall prices in six years, DataQuick Information Systems reported Monday.
The median resale price for existing single-family homes dropped $15,000 from November to December to stand at $550,000, the largest month-to-month decline since DataQuick began keeping records in 1988.
January 17, 2006
Posted by blogger at 1/17/2006