August 11, 2008
...In other words, "the real-estate market would look like it did eight or 10 years ago," said economist Richard Green, director of the University of Southern California's Lusk Center for Real Estate, "before the subprime mortgage boom got started."
That doesn't mean homes in Manhattan or Santa Monica would suddenly become cheap. Desirable areas that attract wealthy people will stay expensive, Green said, since those folks can afford to outbid the rest of us for homes.
But overall, homes would remain affordable for most buyers in most markets while still offering modest appreciation over time...