A widely watched index of U.S. home prices fell 11.4 percent in January, its steepest drop since data for the indicator was first collected in 1987.
Tuesday, March 25, 2008
House prices falling faster
In past posts, (Let house prices fall, Sunk cost fallacy in real estate, One man's foreclosure becomes another man's treasure), we have argued that the "stickiness" in house prices is exacerbating the uncertainty in financial markets that trade assets tied to the house prices. Now we have evidence that house prices are accelerating down, which may "unstick" the financial markets:
Subscribe to:
Post Comments (Atom)
I don`t think so that the foreclosure can be other man`s "treasure" as it determinates the price of other houses in the neighbourhood and often this price doesn`t show the real value. As a realtor in Toronto I would say that the recession of the real estate market is due to the bad economic situation and foreclosure is one of its result. People should be more aware of taking mortgages and making premature decisions.
ReplyDelete