Housing prices will fall like 20% in 2007 ?? First overall decline in 40 years?

Question

Du mostly to defaults in the ¨SubPrime¨and ¨Alternative -A¨ mortage markets. If 40 percent of the ¨ALT-A¨fails this year,finnacial markets will be looking at $1 trillion in defaults.

This will affect all USA, or only some Specific areas?????
Only Houses or General Real State ???
( In other word : Because State intevertion in Markets
/ politicians wrong intervention like always)

Answer 1

It's the beginning of the end. Did you see what Kuwait did today that impacts on the U.S. dollar? -RKO- 05/20/07

Answer 2

Well, actually individual greed had a lot to do with it.
When stocks went down in value people ran out to buy real estate to increase their net worths. People created an overvalued real estate market which now is beginning to come back down to reality. A lot of people wanted in on the action so they took risky loans and they outsmarted themselves. Actually government is the good guys in this case because they want to bail out institutions who created these bad loans instead of letting them go under like they deserve. They do it mainly to help banks. Government is not always the bad guy.

Housing prices should fall but only God knows how much. 20% seems to be excessive.
Yes, it will probably be the biggest decline in 40 years but keep it in perspective, the market doubled in many U. S. Regions. This will probably affect most U. S. areas and some more than others.