Mayors see 7% decline (- $1.2 trillion) in 2008

[TheBreeze]

Well, we’re finally starting to get some realism out there. The U.S. Conference of Mayors is predicting a 7% decline in home prices in 2008. A 7% decline equals $1.2 trillion in value. California home prices are expected to decline 16%.

http://money.cnn.com/2007/11/27/real_estate/mayors_fight_foreclosure/

I think these are pretty realistic numbers. I’m impressed that there is at least one mainstream group out there that is no longer in denial.

Now the question is how long it will take until we see the bottom. I don’t think we’ll see it next year as the decline has just started. I think a bottom in 2010 or so is probably more realistic.

[kewp]

The problem with all these models is that they assume that the housing bust has no effect on the rest of the economy.

I think once this starts to snowball we will see all those numbers double (at least) and a bottom that is years away.

[kewp]

The problem with all these models is that they assume that the housing bust has no effect on the rest of the economy.

I think once this starts to snowball we will see all those numbers double (at least) and a bottom that is years away.

[kewp]

The problem with all these models is that they assume that the housing bust has no effect on the rest of the economy.

I think once this starts to snowball we will see all those numbers double (at least) and a bottom that is years away.

[kewp]

The problem with all these models is that they assume that the housing bust has no effect on the rest of the economy.

I think once this starts to snowball we will see all those numbers double (at least) and a bottom that is years away.

[kewp]

The problem with all these models is that they assume that the housing bust has no effect on the rest of the economy.

I think once this starts to snowball we will see all those numbers double (at least) and a bottom that is years away.

[LA_Renter]

kewp – Bingo!

Most assumptions about the direction of home prices are being made with the economy as is. I have never seen such persistent “wishful thinking” scenarios throughout this whole event.

[LA_Renter]

kewp – Bingo!

Most assumptions about the direction of home prices are being made with the economy as is. I have never seen such persistent “wishful thinking” scenarios throughout this whole event.

[LA_Renter]

kewp – Bingo!

Most assumptions about the direction of home prices are being made with the economy as is. I have never seen such persistent “wishful thinking” scenarios throughout this whole event.

[LA_Renter]

kewp – Bingo!

Most assumptions about the direction of home prices are being made with the economy as is. I have never seen such persistent “wishful thinking” scenarios throughout this whole event.

[LA_Renter]

kewp – Bingo!

Most assumptions about the direction of home prices are being made with the economy as is. I have never seen such persistent “wishful thinking” scenarios throughout this whole event.

[desmond]

All the politicians want an interest rate freeze, when one mayor was asked on CNBC why not freeze the property taxes,the guy almost gagged and changed the subject.

[desmond]

All the politicians want an interest rate freeze, when one mayor was asked on CNBC why not freeze the property taxes,the guy almost gagged and changed the subject.

[desmond]

All the politicians want an interest rate freeze, when one mayor was asked on CNBC why not freeze the property taxes,the guy almost gagged and changed the subject.

[desmond]

All the politicians want an interest rate freeze, when one mayor was asked on CNBC why not freeze the property taxes,the guy almost gagged and changed the subject.

[Author]

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