The voice of experience

California tries to stop federal government from dumping homes.

The concern in parts of Southern California illustrates the risks that could lie ahead for other communities as the Treasury begins a massive churn of assets. Depressed real-estate values in areas across the country could slide further if homes are sold to large financial investors who then flip them to others who want to make a quick profit.

"The U.S. Government is now in the real estate business" one Californian representative said. I say, what happens, even in Greenwich, when fire-sale prices start knocking off our spec house inventory? If your own, slightly dated home is priced at $2.5 million and right down the street a spec house, brand new, suddenly appears at $1.95 million, which is going to sell first and what's going to happen to your price? Just asking, is all.