It’s difficult to see any upside to the US real estate market. Unless of course you’re a buyer. Last month it was reported that foreclosures are up a staggering 60% from the same month a year ago.
Even worse it was recently reported that housing prices have a long way down to go. One expert (The CEO of Fannie May, no less) predicts that housing prices have only fallen 30% as far as they will go. That means the pain has only just begun!
Hard to imagine real estate prices falling another 70%, but one things for sure, it’s a rough time to be a seller.
On a personal note, we recently sold one of our (non-investment) homes in Asheville, NC. We bought the house about two years ago, near the market peak. We sold it for about 20% less than we paid. Like many sellers, we were happy to have sold the domain even at a loss.