The SF Chronicle reports, “Home sales in Bay Area crash to 20-year low after jumbo loan cut.”

Bay Area homes sales sank to a two-decade low in September, as tighter lending standards walloped an already-declining market. A total of 3,118 existing single-family homes changed hands in the nine-county Bay Area in September, down 44.8 percent from 5,645 homes last September and down 34 percent from August, according to a report from DataQuick Information Systems, a La Jolla (San Diego County) research firm.

Those “tighter” standards are, in part, about forcing borrowers to show they can pay back the money — something that wasn’t really on the agenda during the bubble.

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