Wednesday, June 18, 2008

What Goes Up Must Come Down?

Updated: The chart above from shows property values in the Sacramento, CA zipcode 95843, going from about $250,000 in 2003 to almost $400,000 in late 2005 (+60%) and now back down to about $244,000.


At 6/18/2008 8:51 PM, Anonymous Anonymous said...

Prices may drop even further because the value of many foreclosed houses has decreased in real-terms. Both from normal wear and tear, and from those who were foreclosed vandalizing their property in retaliation for being foreclosed upon.

In any housing bust prices tend to correct further than the historical average price. This bust will be no different. House prices still have a way further down to go. Don't look for price to bottom until late 09, and don't look for a housing recovery for several years after that.

At 6/19/2008 10:00 AM, Anonymous Anonymous said...

"to almost $400,000 in late 2002"

That should be "to almost $400,000 in late 2005", correct?

At 6/19/2008 10:18 AM, Blogger Mark J. Perry said...

Yes, thank you very much for the correction, I have fixed it now and I apologize for the error.


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