Just a long drawn out process of builders continuing to lower prices until they can walk away from a completed project (with a sigh of relief)
coupled with…….
The denial of resellers as to what todays realistic price is and asking more for a used house than a new one.
Once that fight is over, the next wave will be flat prices with few buyers to step in due to affordability.
While this is playing out over the next few years, the “must sells” and REO’s and foreclosures will continue, establishing values in each area based on supply and demand.
It still wont affect the owner occupied property in an old established neighborhood who will be a few years closer to being fully paid off. It’s remains the majority of homeowners.
NAR spokespiece said that mid-late 2008 will be the bottom. Can you imagine ? I’m not sure that 2010 will be the bottom.
