Are American real estate prices crashing?

Question

There seems to be lots on google about the real estate decline including this blog:

http://www.realestatedecline.com

Answer 1

Yes we have had to drop the price of our 5-bed house with in ground pool in NJ by $50000 in the last 2 months.

Answer 2

In all honesty I think this site is somewhat misleading because it has not delved deep enough into what is truly causing the foreclosure rates to rise.

When you look at what is going on in the mortgage industry and how loan officers and mortgage bankers fudge applications for clients who truly cannot afford a house and should never be entering into a mortgage contract in the first place then you will have 70% of the problem identified right there.

A lot of the banks and institutions are clamping down on this by making their underwriting rules and guidelines more strict and more waterproof than they have ever been before. This is of course going to cause a necessary slump in the market, what else can it do?

But, realistically people, the US just hit the 300 million population mark three weeks ago. In all honesty, with a trend like that can you say that there will be less of a demand for housing, or more?

Answer 3

The past few years have seen a construction boom because of interest rates. Now there are soooo many aprt. and condos here in Hawaii that there aren't enough people to live in them. Prices for rent are still incrdibly high ie.studios for $1000 1 bedrooms for $1600. So us that live here are praying that the market crashes so we can afford to live in paridise

Answer 4

The market has certainly slowed down and is continuing that trend. However even if we enter a recession in that segment it wont neccessarily be a crash, which is the extreme form of recession. So in short, no, the market is not crashing yet.