“The speed at which house prices fall over the next few months could depend less on mortgage rates and Americans’ appetite for home buying than on how banks decide to manage the huge number of foreclosed homes they own or may take from delinquent borrowers in the near future.”
Hey… I’ve been saying for a while now that if you want to know how far housing prices will fall in some markets, then all you need to to is look at local incomes. Or to put it in a more technical fashion… check out the ratio of home prices to annual incomes.
We still have a way to go!
Read more in The Wall Street Journal