Housing going down another 40%
- Thread starter midlifeguy
- Start date
No way. Stop reading the newspapers. I don't agree with everything Ben Stein said in his recent article, but he made a good point about "irrational pessimism". This is it.
We're in a dynamic system. You can't extrapolate like that. Just because an airliner is in a descent, does not mean the plane is going to crash. Maybe it means that it is coming in for a landing. With prices this low and interest rates potentially going lower, I want to upgrade my house.
SM
Good post.House prices have come back a lot already and there are some good deals out there.The problem is that every time you turn on the TV there's some waste-of-space reporter standing in front of some 'for sale' or 'foreclosed' sign scaring everyone off.Honestly it makes me sick,I mean what are they trying to do?drive the market down lower it seems!
With rates going lower houses seem an ideal place to invest,interest rate cuts have historically caused house prices to go up - money in the bank will return a measly amount,stock prices could go anywhere and let's face it some of these stocks are taking severe batterings lately,talk about capital growth,more like capital evaporation!
Property is now coming back to levels where the rental yield is looking great,the right deal and you can be looking at over 6% return.
I actually think it's time for buyers to wake up before they miss it.
miss it? I was reading the washington post sports section, and for some reason the classifieds were in the same section. There were 12 PAGES of trustee or auction sales. I think you can be patient...Trying to pick a bottom in a vacuum can be quite dangerous.
Housing market doing very well where I live
Or, perhaps the pilot has bailed with the only parachute.
In any case, as you can't fly the plane and can't get off, you're along for the ride. If you only have a few minutes left anyway, perhaps having a gin and tonic and canoodling with the stewardess or spending some quality time talking with your loved ones is really not such an unintelligent choice.
So with all the foreclosures in America and people struggling to get mortages there must be a hell of a lot of people renting right?
True,picking a bottom in a vacuum can be dangerous but if house prices went down as much as the thread starter suggests then rental yields would surely go up to 10-15% per annum!!On that basis the numbers just don't add up.
What I'm saying is that everyone seems to be waiting around for the deal of a lifetime and just as people panic-bought at the top thinking it wouldn't stop going higher, buyers should be careful not to miss the boat assuming they are buying into a falling market or they might end up having to buy one of those run-down dumps at auction.