Got some bad news for idiot realtor bloggers in Phoenix and around country, and for any of the sheeple who believed the housing cheerleaders and bought a house these past couple of years:
Leverage sucks on the way down.
Also, after being in Vegas for the week, one thing stands out about the new homes they've built in the Southwest during the bubble:
Damn these garages, err, I mean homes, are butt-ugly.
Here's the down and dirty. Look out below. And watch out for falling knives.
Double digit home price drops coming
Over the next few years, more than three-quarters of the nation's housing markets will suffer some decline in home prices. Many will experience double-digit hits in a forecast that has worsened considerably in recent months.
According to an analysis conducted by Moody's Economy.com, declines will exceed 10 percent in 86 of the 379 largest housing markets. And 290 of the cities will experience price drops of 1 percent or more.
The Stockton, Calif., metro area, where Moody's predicts a 25 percent price drop, will be the hardest hit among the 100 most populated cities surveyed.
Just a tick or two behind Stockton in the Moody's survey were two Florida metro areas, Palm Bay/Melbourne (down 24.9 percent) and Sarasota/Bradenton (down 24.8 percent).
Six of the nation's 10 biggest cities face price declines of 1 percent or more with Phoenix, at a 17.8 percent loss, undergoing the worst reversal. The San Diego area will suffer through a 10.9 percent fall, Los Angeles (down 10.6 percent), New York, (down 5.3 percent), San Jose, (down 4.4 percent) and Philadelphia (down 3.1 percent) will also fall.