Nothing like being labeled a housing “Danger Zone” (as if earthquakes weren’t enough). CNN/Money confirms that the majority of buyers in San Francisco (and 49% of buyers in Oakland) are resorting to “non-traditional” loans. Not new news to our readers (other than the moniker), but the quote from the chief economist with the National Association of Realtors surprised us a bit. Looks like he’s starting to hedge his “we’re not in a bubble” bets:
At greatest risk, says David Lereah, chief economist with the National Association of Realtors, are markets where a majority of buyers are opting for nontraditional loans.
“There will be cases where lenders and borrowers will be caught with their financial pants down,” he says.
· Crazy loans: Is this how the boom ends? [CNN/Money]