The Union Tribune. “So far, said DataQuick analyst John Karevoll, home selling has involved a great deal of distressed properties, nearly 50 percent of all San Diego sales in January involved foreclosures and defaulted homes.”
“‘Bad as it is for those involved, it is something that can work its way through the system,’ he said. ‘But if we add in a recession, then prices could go back to where they were in 2004.’”
This guy misses the point. The prices are already at 2004 levels. The “foreclosures and defaulted homes” are the market. All real estate must compete. If houses sells at a 2004 price, the market is at the 2004 level.
