The NY Times speculates that speculation in housing today may not produce future gains, such as those enjoyed by our parents and ourselves over the last 40 years.
In Los Angeles, housing is extremely overpriced in a few areas of the city, mostly near the beach. And there are factors that will keep some areas very affordable for many years, undesirable facts that include: bad schools, unsafe streets, illegal immigration, hot weather, bad air and sparse public transportation.
If the economy was healthy, and unemployment was lower (it is now 12.5%, third highest in the US), the housing market might be OK.
But real estate reflects an unethical past. Loans were handed out regardless of income. Lying was built into the system. A fake, subsidized increase in values, brought on by mortgage-backed securities, produced a bubble.
And now we are living in the morning after.