Home Values Could Keep Falling

Right now there is a bank crisis. Surrounding a banking crisis is normally a 5 year dip in properties values. It’s interesting to consider because this would meanthousing prices won’t stop dropping for another 2 years, or the summer of 2011. In addition, stocks and bonds will also dip in value.

Considering the large percentages of people who already owe more than their home is worth, this could be devastating. Loan modification is one step that many people are going to find themselves having to take.

Right now the Case-Shiller Index puts values dropping another 40% in the next two years according to estimates (the math). This would leave the total loss over a 5 year stretch at 60%.

The positive movement in the stock market, it seems, will be nothing more than false hope. I know this, the ultimate trend line will prove one fate a liar and in my estimation, potentially devastate many peoples investments and dreams of a worry-free retirement.