Real estate market bottom. Where exactly is it? Should we be obsessed with trying to figure it out or should we keep on working and investing because sooner or later it will come back?
We’re hearing more chatter about yet another group of ARM’s coming due plus the government real estate bailout was basically a fake detour and will not hold up much longer.
It may be a long hot summer for many homeowners who are worried about their jobs. If they don’t have a job they can’t pay the mortgage.
But there’s another very important point if real estate prices continue to fall in some areas. That means there will be deals for real estate investors who have the money or can get the money.
More on that from Property Grunt. (Sorry about some of his language)
He makes a very good point that we’ve been stressing for a long time. Banks are in the lending business. They are not landlords.
Go to Property Grunt’s rant It’s a Madhouse
Amazingly he points out that some distressed homeowners are actually being paid not to walk away from their mortgages. Unbelievable, but he has the evidence.
But the debate continues….
Early signs of a ‘double dip’ in housing prices – MarketWatch
One in five housing markets entered a second leg of home price declines in late 2009, after showing price increases for nearly half of last year, according to a report released Wednesday by Zillow.com, a real-estate Web site. … a brief respite from a larger market correction that has not yet run its course,” he said. Still, Humphries said markets that see a “double dip” in values before reaching a bottom won’t see a return “to the magnitude of depreciation seen earlier. …
No doubt, San Diego is seeing a few green shoots in the housing market. This is especially evident in the low end of the San Diego real estate market. … By the time the market hit bottom – at least the bottom according to Case-Schiller – that property was worth $134800, a decline of 32.6 percent. Using HSH’s assumptions, the value of our imaginary house won’t rise back to the $200000 the buyer originally paid, until 2022. It will be 12.5 more years until this condo is …
HSH is predicting a flat real estate market with no increase in value through June 2010. Then, from July 2010 through August 2011, a period of 14 months, prices are projected to increase at a rate of about 2.5% a year. …