Will consumers use homes as ATMs again?
Roger Showley, U-T SAN DIEGO
Friday, March 29, 2013
Kelly Cunningham, National University System
At least for now, consumers remain shell shocked from experiencing and/or witnessing the housing market collapse. Problems of too much indebtedness also persist. The “Great Recession” may be this generation’s defining financial lesson. San Diego housing prices remain 34 percent below previous highs but still among the nation’s priciest markets. Contrasted with the area’s median household income, San Diego is also among the nation’s least affordable housing markets. Therefore, there is not much home equity to spend. With consumer confidence mixed, spending is also constrained, at least until the next housing price bubble emerges by the end of this decade.