At a press conference prior to an economic forecast this afternoon, four professors from the Lusk Center for Real Estate at the University of Southern California revealed a refrain we heard earlier in the week from economists at rival UCLA: No big collapse of California real estate expected.
But there are a few things to be nervous about, said economist Raphael Bostic -- namely, the unknown effects on the housing market that may occur when the adjustable-rate mortgages held by so many new homeowners start to "reset," or move to today's higher interest rates.
