Deflating Home prices.

Is the bubble about to burst? Or is it just a minor correction?

Cites to watch, Las Vegas. “33% increase in appreciation between 2003 and 2004, and then a 14% increase by the third quarter of 2005, evidence that prices have begun to cool”
Sacramento California is going to take a beating. “Local Home Value Ratings rates the market as 59% overvalued and Burns Housing Cycle Barometer also lists it as overpriced.” There is just too much inventory in the pipeline, which is pushing pricing way down.

Los Angeles, “Fortune predicts a drop-off of nearly 8% in housing prices in the next two years, putting it in 95th out of 100 markets for growth.”

Check out more major locations here.