SlipperySlope
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Fri May-23-08 02:19 PM
Response to Original message |
3. They have a long way to go still. |
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Assume the starting price of a home was $100,000.
Now take San Diego as an example.
First, prices rose by 150%: $100,000 -> $250,000
Then, prices fell by 25%: $250,000 -> $187,500
They still have 47% to fall to get back to where they started.
If you don't think that is realistic, you can factor in a 3% annual rate from 2000 to 2008, and homes STILL have 32% to fall before they are where they belong.
If you bought in San Diego in 2005, you are screwed. Just walk away.
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