[quote=AN]This is why I don’t think you’re that bearish. Some on here thinks that the pain train will hit all area eventually. No area is immune, just delayed. So if you’re buying at any price greater than 2000 price, you bound to see depreciation.[/quote]
LOL! You talkin’ about me, AN? 😉
Yes, I think ALL areas that saw prices rise above historical trends in the 2001-2007 period will see those prices go back down. The govt intervened after the lower end was hit and BEFORE the upper-mid and higher ends were hit.
It’s not only about purchases at the peak, it’s also about HELOCs and cash-out refis.
Additionally, the most “stable” markets now are those with very old people. Not to be morbid, but I think the impetus for falling prices will simply be due to these people having to move into nursing homes, or moving nearer to their children/grandchildren, or selling to fund their retirement expenses (see what fixed income earners are up against this past decade?), or passing away. Some of their heirs will move in, some will rent, but many will sell. In most cases I’m familiar with, if there are multiple heirs, they tend to sell. If they have no mortgage, anything they get for these properties is pure gravy. There is no need for them to hold property off the market in the delusional hope that prices reach 2005-2006 levels — which were NOT based on fundamentals, but rather based on a **massive, unprecedented credit bubble** that is still in the process of bursting.
