Housing Depression

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I truly believe that the reason for depressed housing values is due to the appraisers working with the last selling price for a similar model. I know of several neighbors who have had an agreed upon price with the buyer, to have it reduced by the appraised value. Since this is what the bank depends on for making the loan, there isn't a chance for housing values to rise.As we all know, foreclosures and short sales are the cause of the current housing value depression. It is more important than ever to let the free market determine what the real value of a property is worth.