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Housing prices are still dropping, with the exception of the very short list of "can't lose" markets in each state.
I think we're in for at least another year, if not two years, of falling real estate prices and markets. Why?
You have to remember how long they offered these silly jumbo loans and consolidation loans and how long they lowered and reduced the requirements for FHA lending. MILLIONS bought way beyond their means. None of those people planned ahead and ended up with payments FAR beyond what they could afford if interest rates rose... and now they can't afford it and have to go. They've lost their ass and have nothing to show for it. It's not just the real estate people, it's the lenders, and the stupid people taking the sucker's bet that bought into it. Sounded great at the time.... sure.... if you're a moron. It's not just low and middle class housing, there are lots and lots of high dollar losers too. The FHA limit was well into the $300k range ( I think it's lower now ).
Between that and the general loss of the dollar's buying power, if you are trying to sell your house as the average Joe with intentions of making a decent return and upgrading, good luck. It's going to be awhile. It may be a buyer's market, but it's not even close to ending yet.
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