Most of you are suggesting a decrease anywhere from 3-10% for 2007. I’ve also read that the market may decline for the next 6-8 years or so. So if the decline started last year, let’s suppose 2012 is the bottom.
If 2007 is in fact the worst year as far as a % decline, do you still expect decreases over the following 5 years even if they are less each year?
The reason I ask, is because in the previous housing bubbles graphs I’ve seen on here, I believe it was pointed out that average prices generally came right back to where they were when the bubble started. Enter the NAR claim that prices were undervalued. Well now they’re overvalued.
Home prices have doubled over the past 6-7 years in many areas, and in some areas even tripled. So given what we know about previous bubbles, shouldn’t we expect declines upwards of 30-40 or even 50% say over the next 6-8 years?
That’s just based on historical trends. If I’ve learned anything on here, it’s that ARM’s and Sub-primes have run rampant and will only increase the downturn.
