jdl51

Property Values Set to Fall 43% from Current Depressed Levels

Fortunately I bought property in the '80s and '90s and have done fairly well, even if we get to the Armegeddon levels the author is predicting. Just looking at my area, S.Florida, another 40% plus drop seems highly unlikely. That would put waterfront homes in the 150s which haven't seen that level since the early '90s, late '80s. At those prices and at present interest rates, which are at historic lows, people would be snapping up property down here so fast it would make your head spin. Imagine you're a European and you could get a really nice condo on Miami Beach for less than 60,000 euros. There is a support level under this market and it is not 40% down from here unless the entire world economy goes completely down the tubes. At present the opposite is happening, with China growing near 9%, the U.S. showing positive growth, EU economy starting to expand, interest rates close to zero in some countries and global stimulus still with the pedal to the metal. If there is any improvement in employment, which at current productivity rates seems just around the corner, the stabilization will be firmly in place.