Wednesday, September 19, 2007

Double-digit home price drops coming

Well. That would certainly wipe out the equity of a
zero down I/O mortgage.

From CNNMoney:

Three quarters of housing markets - many in crashing Sun Belt areas - face price declines over next few years.

Over the next few years, more than three-quarters of the nation's housing markets will suffer some decline in home prices. Many will experience double-digit hits in a forecast that has worsened considerably in recent months.

According to an analysis conducted by Moody's, declines will exceed 10 percent in 86 of the 379 largest housing markets. And 290 of the cities will experience price drops of 1 percent or more....MORE (including chart of top 100 markets)