Yes as TG pointed out I do whine alot about my particular neighborhood, at least the older part of it that has more well established homeowners. TG referenced the post Bugs had regarding the butterfly effect and I do agree that in the end everyone will feel the pinch to varying degrees. By how much remains to be seen. I am of the opinion that very well entrenched communities will feel it less due to the sheer stubborness of sellers who will simply not sell. I am not saying these places will not be immune. There are always suckers who ATM’d the home so they will either dump it or lose it … yet to me neighborhoods do not free fall based on foreclosures alone unless the composition of the neighborhood is of that ilk. To me foreclosures and distress is the ignition and kindling… once Joe seller has to compete with them, then the brushfire starts. So in some well entrenched neighborhoods Joe Seller will not compete…. He will hunker down…Does this provide full immunity for the neighborhood? Not at all… In fact it may provide a little immunity, or none at all… It is just a theory I have and to me may help to explain the variability. Also demand for the neighborhood will play a role.
Of course I am probably all wrong… I guess we will see in a few years.
