Posted on 09/21/2007 8:14:20 AM PDT by Hydroshock
More Americans Say Value Of Their Home Has Fallen Topics:Housing | Real Estate | Consumers | Economy (U.S.)By Reuters | 21 Sep 2007 | 10:48 AM ET Font size: A record 26% of U.S. homeowners say the value of their homes has fallen during the past year, above the previous peak of 24% seen in 1992, a survey released Friday showed.
Reflecting the extent of the prolonged housing slump, 21% of homeowners polled in September expect the value of their home to decline in the year ahead, up from 18% in August, according to the data from Reuters/University of Michigan Surveys of Consumers.
"Overall, the data indicate no let-up in the slump in home prices," said Richard Curtin, director of the consumer surveys, in a statement.
While the Federal Reserve's half-percentage-point interest rate cut Tuesday would help homeowners whose mortgage rates are about to reset, shrinking home values and tougher credit requirements would overwhelm the positive impact from cash-out refinancing in the coming year, according to Curtin.
Homeowners in the western United States, where some of the most dramatic home appreciation had occurred, have been especially hard hit by the real estate downturn
(Excerpt) Read more at cnbc.com ...
Same thing happened in 1990, and again around 1998. Housing values are cyclical. They’ll go up again, and the only folks who will be hurt by this are the ones who bought their homes at the HIGH of the market, two years ago, and are going to have to sell their homes during this cyclical low. If you don’t HAVE to sell, you shouldn’t have to worry. Values will rise again in the next year or so.
That's a terrific feature! Our #1 son bought a condo in Somerville MA when he got his first job. Turns out, they're planning a Metro stop about a block from his house! It's gonna be terrific when the thing gets built. Condos near Metro stops generally sell for $20K - $30K more, all other things being equal.
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