Nonsense! No one can possibly know when the supply/demand equation will come into balance. Homes in fact ARE selling albeit at a slower pace then they are being put on the market. People may just stop listing their homes in a market like this and that happening the over all supply shrinks ans prices begin to rise. There is not necessarily a lack of demand as much as people playing a wait and see game to see how low prices will go. As soon as the sheeple perceive prices are not heading lower they will en mass flood the market. One thing I will predict though. When buyers do jump back into the market this R.E. downturn will reverse as quickly as it came on us and prices for homes will again leap. There will a pent up demand needing to be satisfied. How long will that take? No one knows, all we all can know is it will happen.
Nonsense! No one can possibly know when the supply/demand equation will come into balance.
Of course no one can predict the future. However - we can look at historical averages (rent/purchase or income/house price) and see how things will eventually have to change.
BTW - I am talking real dollars. If housing prices stay the same in price for 10 years - that is about a 50% reduction in price due to inflation.
Generally that does not happen. During most RE downturns and the subsequent turnaround the prices came back slowy but steady. It happened in Texas in the '80's and Ca in the 90's. In both areas it took 8-10 years for prices to recover.
All the news I hear is that homes are “selling” slower in most markets. Pricing of homes is another matter entirely.
Nobody is going to sell their home if they don’t have to, which will keep prices stable. Now is a great time to get that second home you’ve been wanting...check out the government websites for true bargains....
I agree. If we were in a deep recession (which we're not), then I would predict doom and gloom. But the economy is still in good shape. From my perspective I would say that many buyers are simply waiting for a rock-bottom price. When they don't get one, they will start buying again.