[grudk]

This guy's a bit over the top, but his basic premise is correct.

Housing values have risen to unprecedented levels in some areas, mostly CA and the Northeast. There is no way it can continue. Best case scenario is that prices stay flat for 15-20 years while high inflation eats away at their values. Not going to happen. I see a 20-30% correction in most CA markets within 5 years, with the potential for higher losses. If you read between the lines in current RE trends, the ball is already starting to roll in some areas. Now is not a good time to buy, unless you can hang on for 10 years and ride it out.

Too many people have been using their homes as an income-generator, and speculation is rampant. Those people are about to get schooled. The little guys always end up getting screwed.