Angelo Mozilo has a hammer to the head for the skeptics – I number myself among them – who’ve been waiting for more data before concluding that the housing market is facing steep price drops.
Mozilo, the Chairman of Countrywide Financial, the nation’s largest mortgage lender, was quoted in today’s New York Times as saying that home prices are falling “almost like never before, with the exception of the Great Depression.”
We haven’t seen price drops of any magnitude along Chicago’s lakefront yet, and I still have my doubts as to whether we will. Manhattan prices have risen 7% year-over-year in a strong housing market. Chicago’s not Manhattan, but it isn’t California either.