Worth a Read

Check out the new Brookings Paper by Karl Case: "The Central Role of House Prices in the Financial Crisis: How Will the Market Clear?" (PDF download link)

We loved this quote about how Californians can take a market beating because good times always seem to be around the corner.

And of course Californian's have been here before. Most residents were here to see the three previous boom-bust cycles.  Every time home prices fall substantially, within a few years they came roaring back. Even now, anyone who bought or owned in California more than five years ago is worth a small fortune. The attitude of buyers in our 2008 survey is quite upbeat.  Especially in California, buyers acknowledge that prices are falling rapidly now, but they still believe that "it is a good time to buy because prices will rise in it the future."

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