Distinguished locales will have and hold their value, even as empty lots. Homes with distinctive views of a skyline or mountain range will have similar price strength.
On the other hand, non-descript ("cookie cutter") homes in ordinary, non-special areas will languish unless properly priced. Unlike a "one of its kind" home in a unique area, an ordinary ranch house that is one of thousands will have little value, and its sellers would be advised to distinguish their home on the basis of price before the market drops further.
Housing price trends are not likely to reverse a five-year downward trend, due to macroeconomic factors (the recession) and real estate-specific factors such as a glut of supply, an overhang of possible foreclosures, tight mortgage credit and a likelihood of substantially higher mortgage rates in the near future.
Eric Dixon is a New York lawyer and investor who advises startups and entrepreneurs on legal, business and crisis management issues.
Eric Dixon LLC