Is the sky really falling?

My questions as you read the article posted below:

1. Is the foreclosure rate the bell weather metric for a real estate crash?
2. Once the sub-prime market has corrected itself - will real estate not see better days?
3. Is there an equity crunch? Rates are low - capital keeps moving into the United States.
4. What happened to all the talk of a housing bubble?

My concern is that articles like this scares people and is borderline irresponsible journalism. Jobs drives real estate - period. Job growth in the valley is robust. People need to be aware of what they can afford and get loans that make sense. No reason to be scared about buying real estate. First the media scared people into NOT buying real estate - pointing a real estate bubble that didn’t really exist at the national level. Now they’re scaring everyone with “foreclosures”.

Foreclosures may hit 1.5 million: “About 1.5 million U.S. homeowners out of a total of 80 million will lose their homes through foreclosure, University of California-Berkeley economist Ken Rosen said last week.”

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