[zek157]

What will happen? Thousands of investors that have been sitting on the sidelines will pick up houses for quarters on the dollar. I used to buy old houses, renovate and rent them. In my area the last 3 years numbers didn't work unless you counted appreciation. Instead of buying I began selling. I assume many others did the same and are waiting for the rest of the cycle. The equation is now reversing.

[djf]

Do you have $200,000.00 buried in coffee cans in your backyard? If not, you will need to get a loan, even at quarters-on-the-dollar.

The reversal we are starting to see in prices will be accompanied by a reversal in credit availability. There will be a liquidity crisis. I don't see how it can be avoided.

(I'm not talking about your particular situation, just generally.)