25% decline from today for new, probably 30-35% for resale since the new construction has already been discounted more in my area, this would represent a 50% drop from peak overall for both. Specifically I am looking at a 2100 sq ft new detached alley home that is list priced at 341k today with granite,ss appliances, etc. Comparable style resales are about 370-400k with an occasional thrashed repo lower. If that gets between 250 and 300 then I will be inclined to pull the trigger. My reasons are not about timing the market but about fundamentals. Rent today would be 1700-2000 for the same property, the loan would be only 2x my income. With 50k down a 250k 30 yr fixed mortgage it is about $1550 P&I. Taxes, insurance and hoa are roughly cancelled out by the income tax deduction, so then it makes sense to me. Of course it would be nice to be closer to the 250 than the 300 but that is where it gets tempting.
