MarketVViz

Property Values Set to Fall 43% from Current Depressed Levels

Interesting to see so many that don't think real estate prices will go much lower. I'd say the major thing keeping prices stable at all is the low interest rates. As soon as interest rates go up, housing becomes less and less affordable, this will force prices down. I don't know why so many people think that a house that sold for $200,000 in 1999 should be worth $400,000 today just because it sold for $430,000 at the peak. Its still a $200,000 house plus inflation, give or take a few thousand. If you want to know what your house will likely sell for in a few years, look at what prices were in 1999. You can add to that for inflation if you want, but the truth is, nearly all bubbles correct BELOW trend on the downside, so prices will likely be lower than 1999 in real terms.

I think everyone should read:
A Cautionary Housing Tale from Japan
www.bullnotbull.com/ar...