Originally Posted by
SkyHigh
They have already fallen a lot in most areas of the country. Eventually the market will begin to recover. There are already articles out there cautioning that buyers shouldn't wait too long.
SkyHigh
Originally Posted by
SkyHigh
Once the mortgage pipeline get going again this market will find a floor. There are buyers out there but they can not get loans right now. The Fed propped up the mortgage markets with 200 Billion last week. By the end of the summer things will begin to flatten out in the housing market.
The next act will be inflation. Houses cost a lot to build. When gas goes up so does the price to build. Speculators had a huge effect in some markets but their effect certainly is not nation wide. Many parts of the country did not experience a housing bust at all.
Prices will return to normal. Expensive and getting more expensive.
SkyHigh
I guess we all know what business Sky went into after leaving flying: real estste! The only people predicting a floor in the market this year are the ones who said prices would go up this year, i.e. the National Association of Realtors. They have been cheerleading their outlook while burying their head in the sand because real estate agent is a mighty lonely job right now. Not enough clients and definitely not any influx soon. Year 2000, average price of 2000 square foot home = $139K. 2007 average price 2000 square foot home= $229K. Folks, the reason for the demand was cheap money to people who couldn't afford the house they were bidding up the price on. Banks will weather the bad loans this time, but if they go to business as usual, the next round of bad loans will bankrupt them. Housing prices are local, but until the average price is within reach of the average wage earner, there isn't going to be a "floor."
Buy a house to live in, not as an investment. While some have made out extremely well in the housing bubble, other investments outperform real estate consistently unless you have dual usage and purpose for the property while owning it. You got to live somewhere, so if you sell that fancy house for lots of money, just means you have to spend lots of money on the next house and you are no better off.