Wednesday, August 29, 2007

....and here is the cure




Sellers are starting to reduce prices in Washington DC. Inventory is up, sales are declining, and if those houses are going to change hands, then prices must come down. DC sellers are learning the lesson first, but other cities will follow.

Ignore all that rubbish from realtors about "soft landings" and "more moderate price appreciation in 2006". Most bubbletowns are looking at corrections of between 20-30 percent over the next two years. Assuming of course, that you can actually find anyone to buy your house. Remember, the houses tend to be very illiquid in downturns. Sales volumes fall dramatically.

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