Not surprisingly, those who have profited most from the explosion of housing prices in the last five years (ahem… that $900K 2 bedroom “fixer” without plumbing), are bound to feel the most pain when housing prices begin to decline. A forecast by Debbie Downer MoodysEconomy.com says that the price declines will be greatest in boom areas like California and the Northeast corridor, but price drops are anticipated for the entire country. In Southern California, the prediction is that our hit will be much greater than the national average of 3.6%. In Los Angeles County, the prediction is that prices will come down by 4.8%. While that may seem like a lot (or not), we did a little math to help brighten the day of those sellers who were contemplating jumping off of their roofs. A 4.8% decline on that $900K house leaves the house priced at $856,800. That still looks like a nice windfall to us.
· Housing Prices to Drop, Report Says [L.A. Times]
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