I found this list the other day, I can't disagree with anything butthe order...If this is the list, how would you rewrite the order by level of importance to declining home prices.
Top 20 reasons home prices will continue to drop in South Florida
1. Home prices are still overvalued by at least 20% to 30%
2. The cost of housing has grown faster than local wages
3. High property taxes are still a concern for first time home buyers
4. Insurance premiums are increasing to unreasonable levels
5. First time homebuyers are priced out of the market for now
6. There is an oversupply of new homes that have not yet been sold
7. Large inventory of unsold existing homes sitting on the market
8. Investors have long pulled out of the real estate market
9. State authorities are pushing for tighter regulation of appraisers
10. Eventually interest rates will rise, decreasing affordability
11. Buyer confidence about the real estate market is still weak
12. The foreclosure rate has been rising steadily without relief
13. New tax break makes foreclosure easier for sellers to stomach
14. Many adjustable rate mortgages are scheduled to reset soon
15. Florida leads the nation in mortgage fraud and loan schemes
16. Mortgage industry is using tougher standards to approve loans
17. Many are moving out of the state to find affordable housing
18. Many sellers have a lot of "paper" equity in their asking prices
19. Currently, renting is at least 30% cheaper on a monthly basis
20. Prices will balance out to whatever the local wages can bare
Only one reason why do not own yet - you have no money! Keep on renting.
I see no immediate reason for the decline to do anything but slow down, but this year is already in the tank as far as hitting the bottom
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