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Real estate - no bottom in sight

Tue May 27, 2008 12:05PM | By Tony

See more in Economy | Permalink | Email | Comments (0)

The state of denial on housing issue among many is such, that I have to ask those folks, if they are pretending or plain stupid. Probably both. The prices will fall simply because of following reasons. First, they haven't fall nowhere near to make housing more or less affordable for millions. Second, number of people ineligible to buy because of credit problems is very high and getting higher. Third, with cost of gas, heat and food, there is not much left to pay a mortgage. Fourth, property taxes are now way too high for depreciated home values, and must come down by 20 - 30% on average to entice some buyers even to look at many areas, but don't tell that to your county officials. So another drop of 15 to 20% in the making.

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