Home prices reflect the local economy

Home prices at their core need to reflect the immediate local area income.

via Bank of America and their global banking profits – California negative equity will push many into foreclosure, examination of inflated California zip codes, banks more willing to push shadow inventory into the open. » Dr. Housing Bubble Blog.

Another example of why low home prices are a proxy for low local incomes.

See also here and here for more background on this issue.

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