Goldman Sachs: sell your house now before it's too late

They didn't headline it like that, but they did call for a 7% national price decline this year and another 7% decline next year. And they acknowledge that even those declines would leave us on the high side of normal price-to-rent and price-to-income ratios.

I can't give you the whole report, but Calculated Risk has a good summary with excerpts.

While declines of this magnitude are large by historical standards, and certainly larger than recent home buyers were led to believe by their realtors, these declines are miniscule in comparison to the size of the increases that happened on the way up the housing bubble.

I believe that the size and duration of a bubble bears some relation to the magnitude and duration of the wreckage that follows it. And if that's true, mere 7% declines for a mere two years would be an extremely rosy scenario.

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