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What confuses me is that some places have dropped 5% while other places have dropped 30%. Is he saying that every neighborhood still has another 25% to drop???
No. What it is saying is that the national average has 25% to drop to get to baseline levels of appreciation. So what this means is that some areas will drop a lot and some won't. It is a national average, not a local average.
Thanks.
And yeah, Silverfall has it right. He's talking national. Of course some will then dismiss this and persist in the belief that their home/area is different.
What confuses me is that some places have dropped 5% while other places have dropped 30%. Is he saying that every neighborhood still has another 25% to drop???
It's all about location. But they are including "national averages".
Some places in the "boonies" have dropped 30-40%. While some of the higher end prime locations have only dropped 5-10%.
Where would you rather want to live? What can you afford? There is a reason those outer suburbs have declined so much.
With respect to the Washington DC area (which is the area I know best), when there are reports that such prime neighborhoods as Bethesda, Potomac, Chevy Chase, Cleveland Park, Dupont Circle, Kalorama, McLean have declined 40%, than I will get excited.
Otherwise, its just another new media report. Yawn, I'm moving onto the next article about this housing crisis.
What do people want from this housing crash? Do they want to buy a home and have monthly mortgage payments $2K that covers principal/mortgage/insurance/taxes and they put less than 5% down while the overall rental market for Single Family Rentals in the same area is over $2500? I seriously think people are looking (or wishing) for this to happen in order to get them to jump back into the housing market.
What do people want from this housing crash? Do they want to buy a home and have monthly mortgage payments $2K that covers principal/mortgage/insurance/taxes and they put less than 5% down while the overall rental market for Single Family Rentals in the same area is over $2500? I seriously think people are looking (or wishing) for this to happen in order to get them to jump back into the housing market.
Rental markets fluctuate, too.
Just curious, where do you live where it is cheaper to buy than to rent, or even close to it?
Here, for $2,500/month you can have your pick of rental houses selling for $1 million or more.
The US median is at 180k (2/2009). If shiller is right then we need to return to the range of somewhere between 80-120k.
To get to the 120k mark that would mean a 33% decline in median home prices still to come.
To get to the 100k mark that would mean a 44% decline in median home prices still to come.
To get to the 80k mark that would mean a 55% decline in median home prices.
I personally betting that the 100k mark will be achieved around 2011. We might even get there sooner depending on how stupid the government acts.
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