The 04 and later buyers in bubblicious areas are well under water already. The banks will sell them at market rates. Since the funky financing is now out the window, that means they have to reverse to some sorta tangible number like 3-4X salary and a 10% down. Of course there is 3-10 times the number of houses out there than qualified and able people to buy.
That pushes the market to where it will be based on fundamentals. That = 97 prices ??? nope, the high paying jobs of 97 are now in India and China. Where will it stabilise ??? no clue. Lets just say its 97. Those that bought in 98-03 are now under. I’d anticipate them to all throw in the towel en masse. No one expects houses to be worth less than what they paid, not even the ones that bought last week. The fact that they bought in 03 means they are certain its not going to turn them Upside down. When that certainity is shaken, the fallout will be of biblical (very similar to Bubblical) proportions. Which is why I feel like the dude that got an estate for a tulip during the days of the tulip mania and am still going to get screwed. eevryone is going to be screwed. The ones that partied the hardest, will be screwed the most. The ones that stood by the sidelines in the party will just about make through the hang over … they did breathe fumes of the booze you know.
Cool.
Cow_tipping.
