What's going on in California is not what's going on in the rest of the country. If someone is investing in real estate with no money down, they will be getting over there head. I don't owe a dime on my properties. As a result I don't really care what happens. I absolutely do not see the prices of houses doing some big drop. The biggest reason is we are 4 million houses behind the demand. With skilled labor retiring and not having good labor out there it's even more difficult to play catch up. In the last 40 years of real estate, there has been one real estate crisis and is was created by government loaning money to people that can't afford it. The answer the market has come up with for the price of houses, is home loans going out to 40 years. PLEASE to not be conned into that. You will pay for that house multiple times with the interest. The longer the loan the higher the interest. Home sales did NOT slow down during the Carter administration. People still need a place to live whether they rent or buy.
What people need to do is focus on getting out of debt so they can purchase more home, and so they can deal with the inflation. If you add up all your monthly payments you will see how different your situation will be if you were totally out of debt.
