I'm certainly not househunting right now, but with friends looking, and other friends applying fresh paint to their new homes, this LAT article on interest-only home loans caught my eye. The loan structure is a gamble - risking both the buyers' security and the market itself.
The graf that prompted a post, however, highlighted the last bubble-bursting event in California:
The last statewide downturn in housing came 15 years ago, sparked by large job losses in Southern California's defense and aerospace industries. Nothing like that is happening now. Many experts forecast prices to continue to rise, but more moderately.That's mostly good news - but note the deleterious effect of defense cut backs - and remember that BRAC is gearing up - with California installations squarely on the chopping block.
Just an observation.