Home price decline accelerates

Home prices are falling at an alarming rate and the rate is accelerating. Full Story.

The shear number of homes on the market that have been dumped by speculators is just now being assessed. Many investors purchased multiple units with no money down and no documentation as to their ability to pay. As these empty homes are jettisoned, the prices of neighboring dwellings are depressed.

It’s going to take a year or two for this glut of abandoned homes to be assimilated into the normal mix of real estate investments. In the meantime, prices will continue to decline until the cost of the monthly mortgage is more in line with the cost to rent.