There is no doubt that our real estate markets are in a full blown recession. In most real estate markets property is depreciating at 2% + per month. For example, in California property has depreciated 24% from March 07 to 08.
Be clear, we are not anywhere near the ‘bottom’. Markets will get much more challenging for sellers. More foreclosures, more short sales, more depreciation.
The fact is San Bernardino County is facing the worst home value drop in the US with a decline of almost 46% from its peak in 2005-2006 according to John Burns Real Estate Consulting. Chances are if you purchased or refinanced during the “Golden Years” you’re in a negative equity position or will be soon. What spurred this colossal loss of equity? Simply said…too many loans approved to unqualified buyers created a surge of demand driving prices up to unrealistic values resulting in “false” inflation and “false” demand for inventory.
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