The great crash: Home prices expected to take another hard hit
By Molly Priesmeyer |
09.16.08 | 2:17 pm
If the last two years are any indication, sometime in the near future “equity” might become one of those outdated words that sounds stilted and foreign, like “tolerance” and “candor.” For decades, homeowners relied on home equity for capital, wealth, and security. But as the subprime fallout continues, many homeowners are finding home ownership not only a risk, but a serious burden they can’t unload.
Home values nationwide have already plummeted 18.4 percent since July 2006, according to the Standard & Poor’s/Case-Shiller 20-city index. And after Panic Monday’s collapse of Lehman Brothers and the buyout of Merrill Lynch, housing experts say home prices will likely drop much further.
A new report by the 
