Posted on 12/19/2011 12:45:12 PM PST by Signalman
30 percent of home owners "under water". Home values will drop another 3-5 percent and stay at that level the next few years.
(Excerpt) Read more at money.cnn.com ...
“30 percent of home owners “under water”. Home values will drop another 3-5 percent and stay at that level the next few years”
“stay at the level”?
Sure, because nothing causes price stability like your neighbor getting foreclosed.
Your neighbor doesn’t even have to foreclose. He just has to sell his house at a price that is competitive with the foreclosures in the area. Then when it is your turn to sell you’re not going to be able to unload your house for 20% more than every other house that has sold in your neighborhood for the last 4 years.
The entire inventory of foreclosures has to be worked through before prices will stabilize. Until then ALL sales will be priced as if competing against a foreclosure next door.
Yes. That was the point I was making.
Foreclosure...new appraisals for those selling...lower selling prices...new foreclosures, etc.
It’s nice on the way up, but is ugly going down.
According to Zillow, my house is worth less now than what I paid for it 27 years ago.
And therein lies the real disaster caused by the likes of Barney Frank...
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