US Home Price Decline Accelerates, steepest drop in 16 years.

[Cutten]

Quote from aeliodon:

The question is where is that seller buying his replacement home. He's got to live somewhere and I doubt sellers are going to just take any low ball offer if it ain't enough to buy a comparable home at whatever place he's are moving to.
After this steep decline, we're going to get 7 years of a sideways price correction while RE valuations contract as incomes rise to make RE more affordable.

If the seller is foreclosed than he's not gonna be buying a replacement for 5 years+. If the seller was an "investor"/flipper then there is no replacement home to buy.

 

[jjf]

Quote from Cutten:

If the seller is foreclosed than he's not gonna be buying a replacement for 5 years+. If the seller was an "investor"/flipper then there is no replacement home to buy.

This basically the guts of the equation

 

[ElCubano]

Quote from Cutten:

Which area are you in?

im in the roads...near brickell, coconut grove about a rock throw away from the entrance of key biscayne...

the condo im refering to is on coral way and like 35th avenue...

 

[Arnie]

Quote from aeliodon:

The question is where is that seller buying his replacement home. He's got to live somewhere and I doubt sellers are going to just take any low ball offer if it ain't enough to buy a comparable home at whatever place he's are moving to.
After this steep decline, we're going to get 7 years of a sideways price correction while RE valuations contract as incomes rise to make RE more affordable.

That assumes every seller lives in the house he/she is selling. When I was out west a few years ago I ran into a guy that had 19 new houses under contract. It wasn't unsual to hear about flippers with 2-5 contracts on, just looking to flip before the house was completed. When I left to come back east, there were 39,000 houses for sale in Phoenix and 18,000 were vacant.