Tuesday, November 01, 2011

Home prices heading for triple-dip - Oct. 31, 2011

Home prices heading for triple-dip - Oct. 31, 2011
Naples, Fla., for example, is expected to take the biggest hit of any metro area, a price drop of another 18.9% by the end of next June, according to Fiserv. Home prices in the area have already fallen 61% from the peak.

Other cities expected to be hit hard include the not-so-lucky Las Vegas, which is expected to see home prices fall another 15.9% for a total loss of 66%; Riverside, Calif., is projected to fall another 14.8% (for a total decline of 61%); Miami is expected to decline by 13.2% (total loss: 57%), and Salinas, Calif. could drop by another 13% (for a total loss of 66%).

What we are experiencing is not a recession. It is a mortgage debt-driven collapse of the financial and housing industries that is far from over. Before it is finished, it will wreak havoc with state and local governments and the nation's HOAs and condo associations. Thanks to Fred Pilot for the link.

1 comment:

Anonymous said...

Ah, now, come on Evan:

We all know that HOAs and condos "preserve value". Just look at Florida, Nevada, etc......! I suspect you also might find a high correlation between real estate used as the security for MBS and the status of that real estate as being burdened by an HOA. We all know how that worked out.

Actually the industry of management companies and HOA attorneys is partially correct in that the HOAs create and preserve value in HOA-burdened property - for the practitioners in the HOA management company and HOA attorney industry, NOT for the homeowners.