Housing Bubble: Denial Turning To Fear
In another sign that expectations are changing every day, Chuck Jaffe at MarketWatch talks with several experts, who suddenly see a need to prepare.
Mr. Jaffe, "In real estate markets that tend to go through cycles of being super-heated and then cooling off, declines don't necessarily last for just a year or two. In those situations, past history shows that a housing-price decline can last a decade or more."
That could make planning for the future more difficult. "Some people have let the real estate market save for them, figuring their house would make enough money to put them over the top for retirement," says Lisette Smith "If selling at a certain price will make or break someone's retirement, then a decline in home prices means they may fall short of their goals."
Valerie Patterson of RealEstateJournal.com: "You haven't heard of people being underwater on their mortgage for a long time, but you are about to hear about it more and more, because it's going to be a real problem for a lot of homeowners."