housing bubble related to education

It occurred to me that education funding could be significantly impacted by a housing market crash, since as property values go down, so would property taxes which are a significant source of school district funding.

I imagine that this would hit inner city urban neighborhoods a lot more than wealthy suburban neighborhoods.

Here in SoCal, small one bedroom houses in Compton and East LA have been going for half a mil. There true value is probably somewhere around 100K.

Disclaimer: OK, compton houses might not have quite gone for 500K, but they were fetching 400K for pretty damm small houses, but for an example of what I was talking about see...

Real Homes of Genius

Off topic... housing bubble

We are enjoying our impromptu vacation here in Southern California, so much so that we have discussed moving back here after I retire. The only problem though is the outrageous price of real estate here in the bloated California market.

I am not that worried though. I have spent the last few days reading extensively on the housing market, and I am convinced that our country is going to have a massive real estate crash, even worse than the 90's. My prediction is that in 4 to 5 years, I should be able to pick up a decent house here for under $300K.

You only have to look around here at people earning maybe 80K - 90K a year living in million dollar homes, to know that they are overextended. Sub-prime loans are coming due, foreclosures are at record levels, housing starts are down, and the housing inventory is increasing.

Don't expect a soft landing... it is going to be harsh, and will probably put us into a deep recession.

Perhaps the most telling thing is seeing people paying for million dollar homes and then driving around in Saturn's and other mid-range vehicles. Something is obviously not jiving.

The only question is how low and how long. My prediction... 25% nationally, 40-50% in bubble markets, and for prices not to stabilize until 2011.

Just saying...