Is $1.75 the Bottom of the Housing Market?

October 1, 2008

(AP Photo/The Saginaw News: Melanie Cochran)

The Associated Press reports that this beautiful (foreclosed) house in Saginaw, Michigan was sold via eBay today for $1.75 plus the obligation to pay $850 in back taxes and yard cleanup costs. (Generally, the new owner of a foreclosed property must pay any accumulated taxes and liens, in addition the purchase price.) The new owner plans to flip the property; good luck with that.

$1.75 plus $850 in liens may be low, but is it the bottom? The New York Times has the long-run Case/Shiller Index, which suggests not:

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