This is not us telling you. We have been telling you for a long time that house prices are going down.
Now Moody's Economy.com said on Thursday that some housing markets will crash and suffer price drops of more than 30%. They also said it will not be until 2010 before a measurable improvement in sales, construction and pricing will emerge.
What does all these mean? People who bought at the top, will have to wait 5-15 years just to see their homes reach their current prices again!
Remember, this is not a subprime issue anymore. This has little to do with ARM resets. More and more people bought houses they could not afford and with house prices going down, it's better to simply return the key and walk away.
Again, housing is declining even as the job market is in decent shape. What happens when the job market takes a turn for worse? It should be something that keeps you up at night.
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