Prices Dropping as Inventory Grows
Many areas around the country are seeing home prices come down from record highs as inventory continues to expand. Many forecasters are beginning to worry that a depressed housing market, rising fuel costs, and other factors could mean a bumpy ride ahead for the US economy.
But is the housing industry really headed for a collapse? Like all things real estate it is local in nature. Some markets have seen dramatic price increases that may be unsustainable, while others have seen only modest growth.
The impact of a significant downturn will vary with individual purchasers. Those who intended on flipping their property quickly or hold a mortgage with a high LTV ratio may see a significant hit on their investment.
