Once again, the post was not to provide an argument over whether prime areas will get cut, or by how much they will get cut.
Seems to me that we always see posts by people complaining that prices are not dropping in the neighborhoods they are looking. Then there are the infamous, “how much do you think the market will drop posts”… Then there are the invariable posts, foreclosures are up 500% so get ready for the big chunk down hype…
Again, I am just trying to provide some data that is showing that the distress will affect different areas at different rates. Maybe 4S will drop 20% in a month… I don’t know. I can say with confidence though that foreclosure rates and distress vary SUBSTANTIALLY throughout the county. That people who are searching for housing in the more desireable locations may want to calibrate their timeframes on when they think these desireable areas will become affordable or at least more affordable.
The argument is not about price compression it is about the temporal rate of that compression. I think sometimes there are posts that are way to hopeful/optimistic about the rate and magnitudes of the drops in the desireable regions. I think they will happen but it will take awhile.
