Did the Housing Bubble Just Burst? 10-10-2005 1:43 am

I'm getting the feeling that it has just happened. The number of price lowering and reductions has increased 50% this weekend. The 'new on the market' has exploded to spring time levels as everyone is trying to get in before it ends. The general feeling is slowdown.

Add this to the newest trend, 100% financing with interest only loans, to tap the last possible borrowers (and the riskiest), and possible a final short lived rise in prices. No bank in there right mind would of made these types of loans even 5 years ago because of the risk. Is there a coming banking crises also? Is this going to be a repeat of Texas in the '80's?

This is in North Bay Area in California, which in historical perspective laggs the rest of the bay area by 6 months, but the cracks are forming. Coming soon in your area?

-m