Roughly 3 years ago I predicted that Sacramento home prices had probably reached their peak and would probably soon start declining. Well, little did I know how big the crash would be.
If you want a good look at what Sacramento real estate prices have done in the last 20 years, check out this graph.
Holy Crap!!
I thought prices would drop maybe 10 or 20 percent, not 44 percent. But then I also didn’t realize that before the crash of 2005 the median home price had tripled (!!!) in less than 9 years.
What I don’t understand is why the “wise old men” who were financing all these mortgages couldn’t see what a total clusterf*%# this was going to be. Offering zero percent down loans on houses that sold for one third the asking price less than a decade ago - how grossly incompetent does a banker have to be to do that?
There are probably some people who should go to jail for this.
