Falling prices in Compton

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Good morning, again. The clearest proof of falling prices is a short sale, when the owner and the bank agree that the house has lost so much value that the underlying loan can’t be paid back in full, and it makes sense to get what you can for the house.

Dr. Housing Bubble has a good one in Compton (it’s the second house in the post): This 3-bedroom, 1-bath sold in May for $342K and change. It is now listed, as a short sale, for $294K. It’s been on the market for 22 days. That’s a 14% decline in three months. Admittedly, it’s in an area where the sub-prime collapse has cut into demand, but that’s a steep fall.

Thoughts? Insights? Comments?