Consider that the new programs designed to buy back mortgages and renegotiate them down to a level that keeps families in their homes has two drawbacks.
When these mortgages are re evaluated downwards thats is actually a price reduction. The home is devalued and that number will never show up on an index. The housing drop will in fact be worse than measured.

According to NAR's economist, Lawrence Yun "The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. “On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results.”

My guess is that we have a few more shocks before all this stabilizes and then we will see a change in perception. Real estate will no longer be a ticket to great and immediate wealth. That will be left to something else.


Thanks for Reading
Howard Bell
Your Property Path News Brief
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Your Property PathSF
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Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.

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