Wednesday, February 11, 2009

Bottom in sight?

Lately, I have seen a number of articles looking for a bottom in real estate.  I tend to agree since we have been in a recession for well over a year, housing affordability is better than ever, along with lower mortgage rates and the government taking corrective action in multiple fronts.  Although I dont have a crystal ball, I believe there are many reasons to expect the prices to stabilize in the near future. In my opinion, some of these reasons are;
However, these reasons are not enough to stabilize the market. With the consumer confidence at record lows, and huge unemployment numbers, the would be buyers have been delaying the purchases further. So, what remains to happen before the sentiment changes is the creation of new jobs. Hopefully, this is issue will be addressed by the bailouts, for what they are worth.

It is hard to predict exactly where the real estate market will be in the future just as much as it is hard to predict where the stock market will be headed. However, if you buy responsibly whiten your means in this down market, a home can be a long term investment, in addition to providing you shelter and tax breaks. As each person is in a unique situation with different circumstances, each person should evaluate their own situation when making such decisions. While a brand new expensive mansion will be an option for one person, a fire sale fixer upper with a big discount might be the option for another. Whichever option suits you best, there are far more options available to the home buyer today than to the buyers of yesterday.

Here are some articles that I've been reading recently
Hovnanian's CEO Foresees Housing Are We Drawing Near a Housing Bottom?
Can We Expect a Springtime Bounce in Housing Prices?
The Future of California's Housing: Shortage Ahead?
Homebuilders Agree: January Was A Good Month
Searching for a Housing Bottom? Look at New Sales Activity
Seeking Stabilization in the Housing Market? Look at This Chart
Housing Inventories Offer Positive News
New Home Market Inches Closer to Normal
A Nation of Mortgage Slaves

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