Friday, December 01, 2006

Distressed Real Estate

Wall Street Journal ran a good article about distressed real estate few days ago. Yahoo finance has the free version of this article in http://biz.yahoo.com/weekend/distressed_1.html. You need to be a paid subscriber to read this in wsj.com.

Everyone talks about decline in housing prices. In bay area, I don't see much of decline in the prices. Sure, there are lot more inventory, but the sellers are still greedy. Check out listings in craigslist for bayarea. 3BR house in Fremont still goes for $700k; Price came down by $30k, that's about it. I don't see heavy fall in these prices. Wall street journal predicts that there may be lot of foreclosures next year. I am not too sure. If Fed cuts the interest rate early next year, there will be a real estate bubble - version 2.

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