Chart of the Day #2

CHART OF THE DAY #2….We’ve already had one chart today, but here’s a second one. It comes from the LA Times and shows the trajectory of housing prices in Southern California. As DataQuick analyst Andrew LePage said, “The data are telling us the market will flatten out by the end of the year.”

The question, of course, is what happens after that? The slope of the curve doesn’t give me much hope that price increases are going to hit zero and then suddenly “flatten out.” A few years below zero looks increasingly likely in the very near future.