Global Economics
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Bank of America sees US house prices falling further
Posted on 24 February 2011 with 1 comment from readers
The US housing recovery still resolutely fails to happen. House price sales ticked slightly higher last month but selling prices shifted even lower.
The Bank of America cannot see an end to this anytime soon although there is some sign of stabilization in certain major cities:
1 Comment posted by readers:
Yeah, they will most likely drop further. Not many people have an extra $9-10K to fork out at the end of the year for property taxes. In California many homes are still way over $500K. Those around the Culver City area are still 700K on up with many averaging over $850K. If one does the math on the yearly taxes and insurance for that $850K home one will see that prices still have a ways to go before bottoming out.
Those yearly home taxes on them homes remind me of the community fees that people have to pay on their homes in Dubai. When reality kicks in prices will continue to drop. Here in Taiwan and Hong-Kong we don’t such BS taxes or BS community fees which is one reason home prices do not tank.