Moody’s is way off. If you look at the housing tracker (www.housingtracker.net) you’ll see that the prices are already down YOY 5.5% so is it Moody’s estimate that there is going to be only a 3% correction over the next 2 years…what a load of BS! I am already seeing price reductions on the level of 10% on the MLS listings. This is on properties where the ORIGINAL LIST PRICE was already BELOW the ZEstimate and comps from May 2006 so it’s not a case of buyers asking too much and then repricing lower. I have concrete examples of people selling at below cost and losing money…check out ocfliptrack for many examples.

Here is an example of one I was just looking at: MLS# S442558

Guy wants $464k for his 3bedroom, ZEstimate is like $571k so he has already priced $100k below appraisal. he bought this property just over a year ago for $432k so any lower and he is going to get burned.

This is just the tip of the iceberg folks…the calm before the storm. This run down will be like nothing in history and will send shock waves through the economy, just like the run up set a new precedent in history.