Reply to Why do expert say: Buckle in for a brutal free-fall in home prices

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The headline is more alarming than the content. Most of the people surveyed say a 10-20% drop in housing prices. I would say we’ve already seen about a 10% drop in prices in the DMV, uneven across areas but if you look at all the price cuts prices even in desirable areas seem to me to be about 10% lower than they were say six months ago.[/quote]

This, and for people who bought before 2019, this will basically only wipe out the steep increase in prices over the last couple years but will not touch the equity they built before that. Meaning you can still sell a house for a profit after owning it for 5-7 years at a minimum. The housing market can never sustain steep price increases for long.

The only people who should be freaking out right now are people who bought within the last two years and want or have to sell in the immediate future -- they may take a bath.[b] Also, people who have been waiting for prices to return to 2010-2011 levels are in for a rude awakening -- even with rate increases, that is unlikely to happen because of inventory. [/b]Unlike in 2008/2009, this housing "crash" is not fueled by overbuilding housing stock in hot markets (back then, it was places like Las Vegas and Florida, where developers built thousands of new houses knowing they could sell them to people for little to no money down). We also aren't seeing rippling economic effects leading to mass layoffs. A slowdown in hiring, yes, and some targeted layoffs in some industries, but not the domino effect of the last time. [/quote]

Yeah, like the poster on here who constantly talks about “reverting to the mean”.  Gonna be waiting for that “revert to mean” forever, buddy.  It’s not going to go down that low in this area.  Unless they’re posting from Austin, TX or Boise, ID. Too many folks not wanting to sell and give up their 2.5-3.5% interest rate. [/quote]

Look how sure are you.[/quote]

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