Double-digit home price drops coming, says Moody's

[Kathryn41 3,205]

Sure wouldn't want to have to sell property in south eastern Michigan - all of the cities and communities around Metro Detroit as well as Detroit proper are really suffering price drops - and glad to see that our area doesn't seem to be included either - not that we are thinking of selling, but there has been such a building boom here over the last few years it would be easy for the bottom to drop out of this market too.

[brtlmj 0]

Well its not exactly free upgrades, they are part of the price you pay for the house.

Sure. The point is, buyers are getting more for their money. Those incentives are nothing but hidden price drops.

Your right, the Rate for ARMs will probably improve a bit, but if they have to move, well they have a bigger mortgage than the house is worth.

What I was trying to say was that if a person does not default immediately after his APR resets, then he has a good chance of never losing his house to a foreclosure. The worst loans started in 2005/6 and "teaser" rates typically last two years. This leads me to believe that the wave of foreclosures will last for another year, maybe year and a half. After that, prices will stop falling... or will fall slower.

[w¡n9Nµ7 §£@¥€r 123]

The worst loans started in 2005/6 and "teaser" rates typically last two years. This leads me to believe that the wave of foreclosures will last for another year, maybe year and a half. After that, prices will stop falling... or will fall slower.