Real Estate Downturn

Attached is a link to a fascinating graph posted at Mark Wadsworth's blog, comparing today's real estate downturn to that of 1989. The figures are from HBOS, a British banking outfit (I use the term banking very loosely here). Bottom line, we are in for about another two years of hard times. This agrees with a number of other measures. First, there is the approximate eight year cycle in real estate prices. Next, is the schedule for ARM resets, due to peak in 2011. And now this chart. All in all, we are nearing the top of this section of the roller coaster ride. Hold on! Because the next stretch is even rougher than the first!

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