There are certain areas where it seems probable that prices will correct over 50%. A while back I walked through some townhouses in Chula Vista near the trolley station. They were garbage – small, poorly built with tiny patio yards. The asking price was over 500k! A 500k starter home at current wages is insane! Even at 250k, these townhomes are out of range of the target buyer. I bet over 95% of the buyers of these properties have 100% LTV. So how many will go to foreclosure?
