Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:
Total Price Decline: I would say around 30% from the peak on average.
I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.
The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.
Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!
