Prediction of a Real Estate Recession
Here is a sobering article from the NY Sun predicting a real estate led recession where property values in some cities could drop by 40% or more. In part the story talks about the effect of the previously popular pay option adjustable rate mortgages would take on some households to assist the downturn.
Only time will tell but what are you thoughts? Can a decrease in real estate prices cause a recession? An interesting theory that may indicate we are already headed there points to auto sales originally from an article in the Ny Times.