Home Prices Could Fall By 30%

So you want to sell your East Bay home. Are you prepared to shave 30% off the current asking price to shift it?

Thought not.

But that is the conclusion reached by experts more well-versed in the minutiae of real-estate number crunching than I — house prices will need to drop by 30% to redress the balance and reach a post-bubble norm.

This information — as well as some fascinating numbers on price/rent ratios nationwide (see table below) — was brought to my attention by reader “gfw”, whose own blog picked up the data from SocketSite who were themselves covering an in-depth Fortune Magazine article titled “Real Estate: By, Sell or Hold?” (Isn’t cyberspace a busy place?)

The price reductions that I have been monitoring recently in Berkeley and parts of Oakland average between 5-10%, so there is evidently still some way to go.