Some Home Prices in the Sacramento Area Take Big Price Cuts

The San Jose Mercury has an ad by D.R. Horton homebuilders for huge price cuts.As Mish says:

If you paid full price for any of these, you might break even in 8-10 years.
Or you might not.
Imagine, putting 0% down and waking up $134,000 in the hole before commissions.

Hmmmm.
Here are two things that just do not seem to matter much anymore:

* "They are not making land anymore"
* "Everyone wants to live in California"

As shocked as anyone might be, this is just a down payment.
How long will it be before we hear "No one could possibly have seen this coming?"

As you can see the game is almost over.It appears that California real estate can't keep going higher without an increase in incomes.