Suppose that prices do drop and you buy a house for 470k in a 2005 development that originally sold for 800k.
What will it be like living there?
Will there be a 100% resident turnover (foreclosures, short sales)?
Will this neighborhood get so blighted from foreclosures, neglect, and HOA fee shortfall, that you’ll be afraid to live there? Will some angry foreclosed guy torch his house after moving out, or worse?
Will your neighbors who bought at full price talk to you? Or will they throw eggs at your car when you can’t see it?
I guess my point is – be careful what you wish for.
