Posted by Jack Lee
“Foreclosures push all home values down by an estimated 6 percent, and will contribute to national prices declining another 15 percent by the end of 2009, Ethan Harris and Michelle Meyer, Lehman Brothers Holdings Inc. economists in New York, said in a report yesterday.” Bloomberg News
Buyers are showing hesitation because this doesn’t seem the best time to buy, home prices are still falling and they could be off another 15% by the end of 09. That could represent a $60,000 loss in a little over 18 months from now on a $400,000 home purchase. And if it were not buyers hesitating, we have lenders unsure who to lend to and that has the real estate market in bad shape!