Prices aren't dropping as fast as they were. Investors and 1st time buyers are providing a much needed floor on low end prices. Investors may have deep pockets and continue to support the market. 1st time buyer pent up demand will wane as the tax credit expires. Builders and their lenders desparately need prices to stop dropping in order to curb their losses. Low end builders may be nearing this point. High end builders will continue to bleed. Take your losses this year in order to be competitive in the marketplace.
Ugh. Deduct closing costs and the average is back at 2002 prices. Tough spot for any high LTV buyer or refi'er to be in. Each uptick in pricing is going to be met with new listings from those high LTV'ers who've found an acceptable price point to unload their home. There will be no "V" shaped price recovery. Hockey stick to come.
Prices aren't dropping as fast as they were. Investors and 1st time buyers are providing a much needed floor on low end prices. Investors may have deep pockets and continue to support the market. 1st time buyer pent up demand will wane as the tax credit expires. Builders and their lenders desparately need prices to stop dropping in order to curb their losses. Low end builders may be nearing this point. High end builders will continue to bleed. Take your losses this year in order to be competitive in the marketplace.
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