This topic has been discussed a lot but it would be helpful if some of the more savvy posters could reiterate how the trend could develop- based on what has happened over the past two months of summer.
From the ARM reset graph I looked at: http://www.bubbleinfo.com/statistics-2007/2007/3/15/arm-reset-schedule.html
I think 40% off current prices by 2010. One poster said the auction bids were at 67% of previous purchase price.
If prices return to the “norm” than I guess a formula is possible, 50% off from peak plus 4% annually to 2010, in most average markets. Not high end markets like Coronado, where they really aren’t making land anymore.
There is no way of knowing how much $ the gov will dump into this to make it “feel” better –I don’t see the gov can sustain propping up the whole costly mess, though.
The investors are going to be careful about pouring money into MBS…
How many wealthy people moving into San Diego want to live down by EastLake or south…Olympic Parkway in a depreciating 700K home…are there? I would like to know that. Where can one find these kind of demographics and salary info….
