Comments by "worn down" (@worndown8280) on "-30% HOME PRICE CRASH MAP" video.

That would be about 35.5% price drop. The problem will be demand. At that price with an 8% rate, thats the rate the median American could get right now, at it will go much higher, you are looking at a $2050.43 a month mortgage note. That does not include the impounds of insurance and taxes which, estimated would bring the total to $2858.07. And even this assumes you put down 20% which is almost $70k. Most Americans dont have 70k laying around. The median income of a portland family is 78.5k a year. And that house you state would cost them 44k a year. Thats 45% of their total income. That is still far far to high. Anything above 25% is risky.
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@danielfiore8865 The problem with that definition is that millennial family formation is well below the historical trend.
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Governments and the economic folks dont want to say a recession yet because job losses havent piled up to the point that we see an increase in unemployment rates, but we have already lost almost 2 million jobs. The problem with that thinking is that layoffs have always been a trailing indicator of a recession. Add to that that we currently have over 9 million empty jobs that boomers use to hold. And as more leave the job market there will be no new people to take their place, the boomer generation will just be that large. But eventually all of those empty jobs will be culled and we will start getting to real job losses that increase the unemployment rate. And when that happens there will be short sellings and foreclosures.
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