How much will housing prices drop?

[Mick]

5%?  10%?  15?%

House prices will soon undergo a ‘correction,’ says Mark Zandi, chief economist at Moody’s Analytics — but not a ‘crash’ (msn.com)

[Legend]

Housing has a long way to drop.  Maybe 15% on average but possibly 50 percent in some locales.  There has been a lot of cash out there. Rises in rates, burn off of the fed balance sheet, high inflation on consumer goods, and an unsteady stock market all factor in.

Waiting for the next bailout with 3.5 percent unemployment.

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Sic transit gloria mundi (so shut up and get back to work)

[Cornfed]

Zandi is not a particularly reliable predictor.  However, it’s probably a good bet that there will be a correction after the run up of the last couple of years.

[Author]

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