hoover

Home Prices May Be Nearing Bottom, Bank Equities to Follow?

I can't count the number of times during the past two years that "housing is bottoming". Maybe it is, or maybe its getting ready to drop another 20%. But, I do agree that replacement cost, which is not dropping much, is a theoretical price support for housing. One could of course argue that in time even replacement costs may drop (caused by falling material prices and falling labor). Another thing that helps support housing prices psychologically is government regarding property taxes -- counties will overvalue assessed values to rake in as much taxes as possible. Buyers (assuming there are any) do look at assessed values in determining what fair value is.