Some readers have pointed out that the improvement in the housing market they are seeing has been in better neighborhoods and for non-distressed properties. There is no question that we have a bifurcated market.
Non-distressed properties are down on average 25% from the peak while the distressed property market is down 40%. As the chart below shows, the non-distressed segment has shown far more (relative) price stability than the overall market.
|Source: Morgan Stanley Research.(also DataQuick ; using Repeat Sales methodology)|