Rocktex

Housing Prices To Return All the Way To Pre-Bubble Levels?

Look at Japan's real estate for reference.
In early 90's, Japanese residential housing lost more than 80 percent and has been taken 15+ years without a sign to go back to pre-bubble stage.
I am not saying that USA should follow the same patten, but there is such a possibility that could be the case.
I was there thru 1991-1997 Los Angeles RE market and had seen it happen. People surrendered their house simply because there were no equity in homes. What the damage can do to them? They love to keep a good credit score, but it is just beyond their reach.
We won't give our sympathy to anyone who became a strawman in a financial scandle. Those who trapped in this "liar mortage" plot help to create inflated market. In some way, they fooled themselves as the bosses of American Dream Co. until they found out they are just a strawman.
I have some friends speculating lately who bought houses for flipping in 2004-2005. They made huge profit out of the first three deals, but now the last deal in Pasadena went wrong.
They listed it for $ 1.25m and now reduced to $980K after 3 month without an acceptable offer. Yes, they did receive an offer of $870K before the stock tumbled. Now they regret not following my advice to take it and cut possible loses.
All their profit in the past 2 year will be lost and end up with nothing or loses, if they could be lucky enought to sell the last one for $800K.
Well, let's look at the bright side. It is a crisis for some and it is also an opportunity for others, just as today's stock market people is picking up cheap stocks after yesterday's 280 points south.
Don't panic. Just be cool and sharp to explore the opportunity, guys.