How low will real estate go?

msnbc.com ^ | 9-11-06 | Lacey Rose

[Hydroshock]

Get used to it ¡ª the seller's market is closing up shop. The days of fat, fast home value increases are gone. Pack away those flipping fantasies.

"The boom is definitely over, there's no debate about that," said Mark Zandi, chief economist of West Chester, Pa.-based research firm Moody's Economy.com. "Now the question is more how hard is it going to land, if it lands at all."

The answer? Depends who you ask ¡ª and what location you're talking about. How to feel about it? Depends which side of the market you're on ¡ª and what location you're talking about.

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Few, if any, economists are enthusiastic about current market conditions, thanks to a host of bleak figures recently released by home builders, federal agencies and the National Association of Realtors.

[mikeandike]

Buy low, sell high.

[Roses0508]

Lower would be okay for me. We are in our home for the long term and would like to make some real estate purchases as long term investments. I've been waiting for prices to drop. The game is to figure out where the bottom is and get in before it goes back up.

[stylin19a]

Buried in the article

Not surprisingly, Lawrence Yun, a senior economist for NAR, is more optimistic. He claims that the market has returned to more earthly figures after a period of unsustainable growth. "Any decline will be very short-lived," he said. "By the spring of 2007, the market will begin to see increased sales and strengthening in home prices."

sky-is-falling - ping

we're doomed -ping

i-told-you-so-after-10-years-of warning - ping

[Obadiah]

Let's see. Economy booming? Check. Gas prices moderating? Check? Inflation controlled? Check. Housing market? Hmmm...yeah, let's bash that and see if we can't talk it down and make people feel bad. Let's talk about how values will only increase 3 to 4 percent rather than 8 to 12 percent. Horrible! HORRIBLE I tell you!

[caver]

Another gloom and doom story for the housing market.

Not happening in central Indiana.

[PeterPrinciple]

The game is to figure out where the bottom is and get in before it goes back up.

No the game is to buy when it is on the way back up. That is how you know it is past the bottom.

[JustDoItAlways]

If you look at building materials prices over the past couple of years, many materials have more than doubled over the past two years. The housing bubble has helped drive that.

But now we should be saying, what goes up, must come down.

[HEY4QDEMS]

The game is to figure out where the bottom is and get in before it goes back up.

My moron brother-in-law, keeps telling me how the home prices in my neighborhood and going to be less that 100k within a year, (we live in Boston metro -west), dream on.

He's a bum and a loser always calling me for cash so his phone won't be shut off, or so he won't be evicted and always talking about his next get rich scheme.

[theBuckwheat]

The left normally loves to ignore the principles of a free market. But, it seems that they cannot wait for the free market to work and they hope that the "clearing" price for homes is far enough below the going rate that it will do what, exactly? Indeed, why the cheering from the left that housing prices may go down? What values, hopes and expectations are we seeing in this display of projection? That it will be emotionally satisfying to see others take a financial hit because they foolishly paid too much? Is there also a hope that any dissatisfaction this may cause can be picked up by the left and translated in to votes and power? Looks like it from here!

[Hydroshock]

We got the same brother's in law?

[what's up]

You are saying nothing new.

The MSM spouts this every day. It's old, old news.

[SouthernBoyupNorth]

Low enough for me to buy a unattached SFH? I hope....

[Common Tator]

When gasoline prices go through the roof the public can not afford bigger house payments. The price of Gasoline is starting to fall. Gasoline will fall a lot more. As it does home sales will go up.

[Disturbin]

"My moron brother-in-law, keeps telling me how the home prices in my neighborhood and going to be less that 100k within a year, (we live in Boston metro -west), dream on."

You can't get a trailer in metrowest for under 100K!

[stylin19a]

He's a bum and a loser always calling me for cash so his phone won't be shut off...

I think i see a solution here....

[Lurking in Kansas]

Here we go again.

Hey, MSM, get a clue, that's why is called a 'cycle'.

[wtc911]

If you are investing in RE long term then buy when it feels right, don't try to time it and get in at the bottom. Buy low sell high is the phrase, not buy at the bottom, sell at the top. Trying to time it will drive you crazy and the odds of getting it 100% on target at both ends are minimal at best.

The key is to make sure that the income on the property services the debt (including expenses) plus 15%. You won't go wrong that way no matter where in the cycle you buy.

Good luck...

[Jim Noble]

Bulls make money, bears make money.

Pigs get slaughtered.

This will be over when every no-down-payment loan, every interest-only loan, and every negative amortization loan is liquidated and the borrowers (who haven't sold already) are all dead on the floor.

[HEY4QDEMS]

I think i see a solution here....

LOL