I do recall back in 050607 how everyone was a cockacrowing about the fantasmagorical rise in home “values”.
Gravity sucks.
This “plunge” is more accutarely a correction, a return to historical norms, a measure of sanity.
Sanity? Yes, when a ranch house in the Boston Metro area was going for 3/4 of a million dollars, you knew things were way outta whack.
Sucks is you’re a homeowner of a few years or have maxed out on equity loans, but for new buyers, this is pretty good.
This is an unmitigated disaster across the board - for new buyers or whomsever. Do you understand the ramifications of a 14% drop in ONE MONTH?
That 10% down payment of a houses closing one month? GONE. ERASED. And then some.
Where is the bottom? No one knows.
I was called forty six kinds of an idiot by some on FR back in those days because I said that an increased appraisal value on a house represented NO increase in total real world wealth. It seems that many thought that when they were able to borrow huge additional sums against their home they somehow were much better off financially. I never understood where that notion came from.