The respected UCLA Anderson forecast says that California and the U.S. are in a housing bubble.
"Yet the fallout from the bubble in California won't be devastating, according to the UCLA Anderson Forecast. Indeed, the Golden State's economy will expand at a faster clip than the nation's in 2005, thanks in part to a recovering Bay Area, the widely watched forecast says.
...In the eyes of the UCLA analysts, the main culprit for California's housing bubble is excessive price increases rather than overbuilding.
...Outside of California, overbuilding is viewed as the main problem by UCLA. One telling statistic: The nation has added one new residential unit for every adult added to the population over the last two years. The historical average is one unit for every 1.7 new adults."
Thanks to Chris Steins
FULL STORY: California, U.S. in a Housing 'Bubble,' UCLA Forecast Says
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