50% drop in housing prices possible!

[Brad S.]

Got your attention?

George Gammon is always fun, interesting, and very informative. 

But, don't worry, he didn't really mean 50% .....or did he!

Click below!

The Fed's New Plan To CRUSH Home Prices (50% Drop Possible)

[Chris Martin]

In 2007-2012 I saw 50% drops in many areas throughout central NC. A few examples:

I bought these properties in the same subdivision:

Original owner paid $105,500 on 7/7/2005 and I bought for $36,000 on 3/22/2011
Original owner paid $105,000 on 7/14/2005 and I bought for $35,000 on 9/13/2011

I could give hundreds more examples, but those are some of the ones I purchased. This little ranch single family was a mile away:

Original owner paid $79,000 on 8/5/2005 refinanced for over $100K and went to foreclosure (to HUD) for $99,500 on 8/5/2010, and I closed on it from HUD for $18,500 on 8/4/2011. My bid was 51% of list price after three 10% price reductions. I wrote about it on 7/27/2011 here on BP while closing was pending. I still own it. 

So, no, a 50% discount is certainly not unprecedented and honestly, I think 50% discount not unrealistic in some areas/neighborhoods that are ahead of the overall market. It may take a year or more to realize the 'bottom' in many markets, just like after the GR. Low beta markets (lower price volatility areas) like the Raleigh area will most likely have less dramatic (less steep) 'instant' price drops.