“home values are down”
Just imagine when they drop another 50%+ to reflect historical values (IOW “what they’re actually WORTH”). The price is still in a bubble, and a lot of people were duped into buying when housing was nearly double what people could, in reality, actually pay. Unfortunately the con of a home rising in price more than inflation (actually, home values should stay the same or fall with age, but I digress), and being an investment, was a fool’s notion, and sadly tens of millions were sucked into the game, many of whom are underwater and defaulting by the millions. That’s not a recipe for happiness.
That aside, there are a whole lot of things that need fixing, and there’s a long way down before people hit rock bottom. Then they finally start to wake up.
Personally, the continued downward spiral of home prices makes my stomach churn.
We built prior to the “boom” with the intention of staying put and we didn’t play games. Now our house needs to go on the market because we have to relocate to another state.
I’ve heard the values have already fallen to 2002 levels so if prices continue to plunge... I don’t know, I don’t even want to think about it. “It is what it is.”
???
A house is "worth" exactly what a buyer is willing to pay and a seller is willing to accept in an arm's length transaction (ie., neither party is under unusual duress). Housing prices are down - - and falling - - only because there is currently a significant oversupply of housing inventory resulting from high unemployment and underemployment which are themselves the result of a crappy - - and deteriorating - - economy.
I have no idea what you mean by that other nonsense.