The sub-prime pig is through the python

May 6, 2010

by Mike Simonsen

1 comment

Year over year price changes for single family homes in the state of California as of May 1, 2010. The sub-prime pig is through the python. (illustrated here by the bottom quartile, the lowest priced 25% of the homes in California)

If the recent price weakness at the high-end accelerates look for our python to gorge itself on million dollar mortgages. Say it with me now, “current housing market conditions are the big driver of mortgage default risk.”

California homes, YOY price change as of May 2010

Single family California homes by price range quartile, year over year price change as of May 1, 2010. In Q1 of 2009, the lowest priced homes in California were 32% cheaper than the year earlier. Now they are 1% more expensive than last year at this time.

Previous post:

Next post: