-55% is the new -40%

Christopher Thornberg, the most bearish of the housing experts quoted in the Los Angeles Times earlier this year (predicting in March that Southern California home prices would eventually fall 40% from their peaks), now expects that prices will keep dropping throughout 2009, until they’ve fallen 55% from their peak.

Even I found that a sobering estimate.

That would mean that the median Southern California home price will have done this:
    $505,000 (top $) July 2007
    $300,000 (-41%) October 2008
    $227,250 (-55%) Eventual Bottom

There’s also a table, showing various regions in Southern California, and along with sales and price figures compared to a year ago.

Read the full story in the Los Angeles Times
“Price of Southern California homes falls 41% from peak”
November 19, 2008

Hat Tip: Larry Helmerich

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One thought on “-55% is the new -40%”

  1. I have to say, I’m looking forward to normal prices again. We would love to upgrade our house, but the property taxes alone are daunting at the peak prices. I’d love to get back to the $227,000 price range.

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