by Calculated Risk on 5/18/2007 12:30:00 PM

From Jon Lansner at the O.C. Register: Wells Fargo sees SoCal home prices down 6%-plus through '08

Scott Anderson, senior economist at Wells Fargo Bank, sees SoCal median home sales prices falling 2.3% this year and 4.1% in '08.

And Anderson on the impact of the housing bust on the SoCal economy:

... it appears the “direct” impacts from the drop in housing demand has yet to be fully realized in the economic and payroll data, and we will still have to deal with the “indirect” impacts on household wealth and consumer spending. Credit quality has taken a major hit over the past year in Southern California. Expect a period of below average and perhaps disappointing economic performance as the residential housing adjustment continues.