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Reply to "For fellow housing bears"
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[quote=Anonymous][quote=Anonymous]If home values stagnate or fall in the near- to medium-term, then current owners in desirable areas are going to stay in those houses forever, because they won't want to sell at a loss. This was something of a problem during the last downturn, when it took something like a decade to get back to 2004 or 2005 prices (and some places still haven't). So even if prices come down, it will only help buyers so much.[/quote] Somewhat, yes. For those who are financially secure, the price of a house is irrelevant mostly. During the last downturn, the cheaper areas had very high inventory--especially of short sales and foreclosures. The more expensive areas had very low inventories of homes at all.[/quote]
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