California: Downturn Is A Good Thing
Michael Carney, Executive Director for the Real Estate Research Council at California State Polytechnic University, and regional economist, John Husing, see the recent slowdown in the real estate market as a good thing for California. True, in Southern California at the end of June, there are 16,595 new houses and condominiums for sale. That is up a staggering 171% from the end of July 2005. But, there is room for optimism say Carney and Husing.
California is still one of the strongest housing markets in the country. There are still more people who need homes than there are homes for sale. Unemployment remains relatively low, and the economy appears to be holding. If all those factors remain in place, the current housing market adjustment, they contend, is a good thing.