sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”
I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.
Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.
