“Maybe 50% or maybe only 1%. It would be interesting to know.”
Here is also something to consider. Say it is 1% that are in trouble in that neighborhood, if they are in trouble than potential buyers of the same means will not be able to buy that property assuming tighter lending standards. For every person in trouble there is a corresponding decrease in demand. Lets say you have 10% of people that are in trouble that paid near peak prices, then you have also reduced the pool of potential buyers by 10% giving a net of 20% decrease in demand (people leaving Foreclosed properties that they shoud have never bought + decreased pool of buyers that would have been able to purchase that property in previous years) and you have added 10% of those properties back into inventory. Point being the numbers really don’t have to be that big to have significant impacts on local markets.
