Reply #5: I am not sure I buy this

[quaker bill]

Based on the news reports, I live in one of the more depressed markets in the country. Even in my relatively stable established in-town neighborhoods, prices are down by 30+ percent. That being said, median price for homes sold stopped declining three months ago and began to rebound last month. Resales are up and prices are beginning to rise, modestly.

The rise in home values locally over the last decade was not wiped out by any means. Prices declined a good bit, so my home has declined from 320 percent of my original purchase price at the peak to a mere 240 percent of what I paid for it. I did re-fi to a lower rate and pulled some equity out to remodel for energy efficiency, so I am now financed to near 50 percent of market value on a conforming fixed rate note. There is not a chance in hell I will ever go under water.

No doubt, people in the ex-urbs who bought in 2006 and 2007 are quite underwater, but they already are and will be staying there for quite some time to come. Many have already walked away, but most who will do so already have. Perhaps conditions are markedly worse elsewhere and in a few small areas I am sure it is true, but most reports indicate our market to be among the worst.