There has been a lot of discussion on this board and elsewhere about the outlying areas being the first to crumble. Well that day may well be here. I posted earlier in this thread about a REO that came and went at $350,000 which was $50,000 less than the other REOs listed in the neighborhood. Well guess what? That price is now the new norm. 2 more listed today in the same tract. Both REOs and both for $349,900 http://www.redfin.com/stingray/do/printable-listing?listing-id=1333592 and http://www.redfin.com/stingray/do/printable-listing?listing-id=1332173

Additionally, this one http://www.redfin.com/stingray/do/printable-listing?listing-id=803579 is in the same tract and is listed as a short sale for $480,000. Assuming it doesn’t sell and goes back to the bank, if they list it at the same $349,000 it will be a confirmed sale at 50% off as it last sold for $700,000. 2008 is shaping up to be an interesting year.