WSJ: Home Market Takes a Tumble

This article details that house prices continue to drop in the U.S., down 3% in the past year on average. Standard Capital is a bridge lender to builders who buy homes from banks and rehabilitate the homes before re-selling them for a profit to families that occupy the houses. The drop in home values means lower profits for our borrowers. We see affordability becoming attractive which should help create a floor for home values even as prices continue to ease in the next 12 months or so. In our view, as long as the Federal government continues its policy of providing low-cost mortgages, the market is unlikely to drop dramatically from current values. Click here to access the article on the Wall Street Journal website. -or- To access a PDF of the article, please click here: WSJ_Home Market Takes a Tumble