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What Happens to a House during Bubble Cycles?

Great illustration using the sales data for a house that just sold in Culver City for an inflated $709 a square foot (don’t miss the earlier entry on the McMansion that went in the same zip for $200 a square foot!).


In 7 years, it was down 29% in value. This bubble is much more overinflated than the last one – all the mortgage fraud has also made it harder to get huge loans without proving you actually make enough money to afford the payments. If this house deflates only as much as the last bubble, it will go for around 525K eventually. Good chance it will drop even more.

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