I argue that this is not your typical drop. Since 2000, affordability products and/or low interest have artificiality increased home values. Now that you have to prove your income in the loan underwriting process, home prices have fallen according. If mortgage rates increase to over 7.5% for a extended period time it will further push down home values.
Read it allHome values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported