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Speed of price correction is ‘almost unprecedented’

USC economists present some bad news, some better news

SAN FRANCISCO -- The bad news: It's "almost unprecedented" that home prices are falling "this swiftly and this steeply in this short period of time" in some California market areas. That's according to Delores A. Conway, director of the Casden Real Estate Economics Forecast at the University of Southern California Lusk Center for Real Estate, who spoke Thursday during an economic and housing forecast presentation at PCBC, an annual builders' conference. Prices have fallen about 30 percent in the past two years in some market areas in the state, she said. "Things look pretty bleak now," she said, with foreclosures "really mounting" in some areas and prices falling sharply in inland California market areas like Stockton, Sacramento, San Bernardino and Riverside. Historically, there have been price declines of similar magnitudes, Conway said. For example, there was a 20 percent decline in home prices in the Los Angeles area in a pas...

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