[quote=walterwhite]So going forward are price declines a reasonably sure thing?
Best guess?[/quote]
Housing prices? I believe that they will be a fact of life for at least 2 or 3 more years in the DC area where I live. Unfortunately, supplies of bank-owned properties in many of our areas have swollen to a really uncomfortable point, and what I feared most has come to pass: the banks are listing them at prices 25% or more below comps. This is following market-driven drops of 20 – 30% or more per year since early 2008. We’re starting to see more people of all income levels simply ceasing to pay their mortgages, and waiting for the banks to come after them. So supplies of bank-owned properties will continue to increase for the foreseeable future.
We downsized in 2008 in an effort to avoid being stuck with the large family abode in our 60s, and trying to sell it at the same time as the rest of the boomers who bought the majority of them. We were dealing with sellers who hadn’t gotten the memo about the real estate bust, and had to really fight to get a realistic price on what we bought (we couldn’t afford to rent, tax-wise). We knew we’d experience a drop, but it’s alarming how much and how fast – and it’s due primarily to increases in supplies of bank-owned properties. For now, we’re okay: no plans to sell for at least another 10 years. But our neighbors who need to move for work, or unavoidable personal issues, are really screwed.
