Inflated house prices

I like reading Paul Kedrosky’s Infectuous Greed blog, even if I think he occasionally says some things that are completely moronic. One reason I do, though, is the occasonal food for thought, like this post on inflated house prices.

Yale economist Bob Shiller says in the weekend issue of Barron’s that he’s still looking for 20-30% housing price declines over the next 5-10 years — including in untouchable cities like San Francisco and New York (and I’ll include Vancouver)

He goes on to quote the article, talking about the relocation that’s occurring. Some folks left comments that pointed out that there are always going to be people drawn to jobs in hot markets like New York or San Francisco, but I know of at least one San Francisco-based company that’s looking to hire outside of the city.