http://detnews.com/article/20091024/BIZ/910240353/Fed-appraisal-rules-sink-home-values
This article in the Detnews.com site gives a little insight into one of the reasons that housing prices are dropping.
I would have preferred to post this in the downward spiral thread but, alas, that one crashed.
Anyways, these new appraisal rules have been having a significant affect on prices for over a year now. I can’t say that they are wrong. In the long run we are better off with them. They should have been in place for the last two decades.
The bottom line is: more foreclosures are coming….in waves.
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The real problem as I see it, is the appraisors are depending too much on the foreclosed sales. This makes the whole system go out of wack. The lower appraisals are killing the new home market,