Dr. Housing Bubble 09/19/09

California’s Financial Depression: Unemployment and Underemployment rate at Great Depression Levels. 23 Percent Unemployment for Biggest State in the Nation. California Will not see Housing Peak until 2030

California has now reached Great Depression unemployment levels. Many are now calling the end of the recession but there is no sign that California is inching closer to prosperity. Last month the unemployment rate shot up to a post-World War II high of 12.2 percent. This is only the official headline number. The unemployment and underemployment rate is up to 23 percent putting California into its own mini depression. The great housing bubble is still beating down on the state economy. Alt-A and option ARM products are starring us squarely in the eyes for 2010. Many of the banks and lenders were probably assuming that somehow by this point in the cycle that the economy in California would be bottoming out. It is not. What this means is housing will take another leg down.

When will California see peak housing prices again? According to Moody’s, not until 2030:

http://www.doctorhousingbubble.com/californias-financial-depression-unemployment-and-underemployment-rate-at-great-depression-levels-23-percent-unemployment-for-biggest-state-in-the-nation-california-will-not-see-housing/

I'm glad the moving van, which broke down in godforsaken noplace, Oklahoma, was making alarming noises as I pulled into the big city. I'm glad it lived until I turned it in.

I'm extremely glad I didn't move into my dad's house in Florida. If any state is worse off than California, it's Florida. I'm glad I had the presence of mind in my grief to count the "for sale" signs and offer his place at 10% under comps. It sold in a week and the bottom officially fell out 3 weeks later.

However, disaster catches up to us all, especially in times like these.

The crash of 2010 might get me. Then again, the worst of that paper has already defaulted as people have lost jobs and those who got fraudulent loans enjoyed 3-6 months of cost free living in a mansion before moving on.

Kudos to the Doctor on keeping up with this stuff and kudos to you for posting it.

You said it about Florida...very wise selling your Dads' like you did, I did the same with Grandma's.
I think you are one smart cookie and thank you for your helpful posts my friend. ;-)