Monday, August 11, 2008

Housing prices

Many homeowners have a peek at Zillow every now and again to see how much their home is worth. Maybe not so often these days as it is apt to be falling! By conventional standards, families can afford a home priced at two to three times their annual income. In our neighborhood, houses are $600,000 and up. And I know most people are not making $200,000 to $300,000 a year. Of course, most bought years ago when prices were lower. But for prices to stabilize, people must be able to afford to buy at current prices. And I don't see that happening yet. I think housing will fall an additional 40 to 60 percent from current levels.



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