The economy has driven our home values down and there is no end in site. Many areas in the nation has experienced major price reductions. Not all areas have been hit but California has 6 areas that had the largest drop in value out of the top 10 areas nationwide. The prices have decreased more then 60% from 5 years ago. This situation will not get any better anytime soon due to the 1,000,000+ foreclosures that the banks are holding this year and another 1,000.000+ foreclosures in next 2 years. It will take a few years to sell off all of the phantom inventory before any appreciation can be realized in these areas.
- Home Values: Where Have They Overcorrected (and Where Do They Have Further to Fall)?(pinkbananaworld.com)
- Short Sale Mindset(velindapeyton.com)
- Number of short sales on the rise(usatoday.com)
- Home Prices in U.S. Fell 5.9% in Second Quarter, FHFA Says(businessweek.com)
- Foreclosures of expensive homes take longer(usatoday.com)