With home prices plunging by more than 30% in some markets, bargain-hunters are ready to pounce.He goes on to say:
But it may pay for buyers to wait. Many housing experts say that the worst-hit metro areas have even farther to fall, and could see total drops of as much as 50%.
"The housing boom was unprecedented in U.S. history," said Michael Youngblood, a portfolio analyst with FBR Investment Management, "and the correction will be as well."
Many erstwhile bubble cities have sustained particularly brutal hits. The median-price of a home in Sacramento, Calif. was down 35% during the three months ended May 31 compared to the same period last year, according to the real estate web site Trulia.com. In Riverside, Calif. prices fell 29%, while San Diego prices dropped 26%....
Youngblood expects that these markets will likely endure total price drops of 50% or more.
"The people who are putting their money where their mouths are," said Perna, "are betting on more losses."
Specifically, Case/Shiller investors are betting that Las Vegas prices will fall an additional 22% by November 2009. Los Angeles futures predict a loss of 24.2% through November 2009, while investors expect to see Miami down 21.6% by then.