Gregory J. Wilcox, staff writer for the Los Angeles Daily News wrote today, Sunday July 30, that some expect a harder than predicted landing for the LA real estate market. But then he quotes Ryan Ratcliff, an economist at the UCLA Anderson Forecast, who believes "that a worst-case scenario of the early 1990s all over again for California is unlikely." A market like the one that existed in the early 90's occurs only during recessions and depressions and no one is presently predicting a recession for Southern CA.

Also quoted in the article is Leslie Appleton-Young, the California Association of Realtor's vice president and chief economist saying "It's more like a return to normal with a bumpier landing in some areas than others," she said. "It's not a replay of the mid-1990s. The economy is growing. We're seeing not spectacular but certainly solid job growth."

So both sources in his article concur with the analysis present in my earlier posts. That is, as long as unemployment and wage growth are stable then housing is well supported.

Neither source predicted a rough landing for the California real estate market.  The "rough landing expected for market" headline does however make a better headline than "return to normal market predicted".