Housing Crash Continues

Housing Crash Continues: "Housing Crash Continues -- It's Still A Terrible Time To Buy
Why?
By Patrick Killelea
Last updated 29 June 2010 (minor changes)

Because house prices will keep falling in most places. Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent. Yet on the coasts, both those safety rules are still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines."