Bubble City home prices falling like rocks
The median price for a home in Cape Coral, Florida has dropped >30% YoY; Cape Coral
Las Vegas's median home prices are now down 32% YoY: Las Vegas
Sacramento, California down 32.3% YoY: Sacramento
Orange County, California is down 33% YoY: Orange County
Riverside California is down a whopping 42% YoY: Riverside
For other Cities around the nation: Housingtracker.net
So, how low will prices go?
Answer: When monthly PIT&I for a new home mortgage, plus any association fees equals or falls below the rent costs for the same home, we will be at/or very close to the bottom - and we ain't there yet!
By that time, millions will have lost their homes through foreclosure, tens of millions more will have wrecked credit, unemployment will be raging, the cost of living will be much higher, credit markets will be tighter, existing home inventories will be massive, and few (due to said credit or employment issues) will be able to secure a new mortgage - even at these low prices.
In the shorter term: Nehemiah - a seller funded FHA downpayment assistance program used by ~ 40% of buyers today - ends on Oct 1st (~21 days from now): Down payment assistance program to end.
The YoY figures above prove it's quite brutal out there now, but the end of this program may be one of the final nails in the housing market coffin.
So, if you've been sitting on the sidelines up to now and you're getting itchy - thinking about jumping in soon, you may want to seriously consider the issues mentioned above before pulling the trigger.
Bottom line: Home prices still have a way to fall.