Tag Archives: Higher LTVs lead to steep price drops: Pro Teck

Higher loan-to-value ratios may suggest a property is well valued, but more often than not, steep LTVs precede sharp declines in home prices, Pro Teck Valuation Services claims. The company made this assumption in its latest Home Value Forecast. The valuation firm says local housing markets with higher LTVs during the 2004 through 2006 housing bubble ended up facing steeper price drops when compared to neighborhoods where homeowners maintained lower LTVs during the bubble. The rapid price declines generally kick in after market shocks send homeowners with less equity searching […]