Anchor ads are not supported on this page.
Print Edition
Classifieds
Stories
Events
Contests
Music
Movies
Theater
Food
Life Events
Cannabis
May 1, 2024
April 24, 2024
April 17, 2024
April 10, 2024
April 2, 2024
March 27, 2024
March 20, 2024
March 13, 2024
March 6, 2024
February 28, 2024
February 21, 2024
February 14, 2024
Close
May 1, 2024
April 24, 2024
April 17, 2024
April 10, 2024
April 2, 2024
March 27, 2024
March 20, 2024
March 13, 2024
March 6, 2024
February 28, 2024
February 21, 2024
February 14, 2024
May 1, 2024
April 24, 2024
April 17, 2024
April 10, 2024
April 2, 2024
March 27, 2024
March 20, 2024
March 13, 2024
March 6, 2024
February 28, 2024
February 21, 2024
February 14, 2024
Close
Anchor ads are not supported on this page.
SD Home Prices at Bottom, Says Forbes. Guru Robert Campbell Disagrees
From the way people talk about a bottom, it seems like they think that once a bottom is hit, prices are going to go right back up to where they were. Something to keep in mind is that when the Great Depression hit so many years ago, there was a similar drop in prices. It took 40 years for prices to get back to the level they were at at the peak of the market before the depression. Personally I think there is going to be about a 70% drop from peak to trough, and that we still have another year or two of dropping prices before they stabilize. One of the problems right now is that the ONLY game in the mortgage lending area is the government through FHA and Fannie Mae. What happens when the government can no longer support them? FHA has already announced that their capital reserve is below %1.0. Yes ONE percent. So if the government drops out of the lending game, there is not many lenders left. The ones that are left are likely going to require 20-30% down minimum and with stricter credit and documentation standards. So if prices at that point are still up around $200,000... that means you would need a minimum $40,000 down payment to buy the home. Also factor in raised interest rates, because they cant stay near 0 forever. As lending standards and interest rates go up, the prices are going to come down. Just as when lending standards were relaxed and interest rates went down, prices went up.— September 25, 2009 1:52 p.m.