It appears real estate values continue to decline after the latest release of S&P/Case Shiller index.  The majority of cities saw continued declines in values.  So what is behind this decline

• increased interest rates: rates have recently come off the historic lows which limits borrowers purchasing power
• Continued tough underwriting standards by banks; banks have not gone back to the lax underwriting days and credit remains tight
• Influx of foreclosed houses: the recent stall in foreclosure due to document snafus has merely delayed the inevitable
• Continued uncertainty in the job market

The factors above in my opinion are the contributing factors in the continuing real estate market decline.  I don’t think we are totally at the bottom yet either.  For more information on the Denver market please visit www.cohardmoney.com and for the Atlanta market: www.georgiahardmoney.com