In our local market, we have seen an increase in price per square foot over thelast three months. We have seen our inventory reduced to less than three months. All market indications are that prices have formed a pretty firm bottom and will be headed up from here.
Insurance companies are in business to make money. The mere fact that they are just now coming out with this insurance should reassure you that all market indicators are pointing to a solid bottom in the housing market. Had they come out with the insurance during the actual falling market, they would have had much more demand, but they would not have been able to withstand the falling prices and the actual losses they would have taken. Getting home value protection insurance now is like getting full coverage on your car after the hail storm, or shorting a stock after it has hit bottom and is starting to come up. It just doesn’t make sense.