Foreclosures are driving prices lower - anybody care to guess when the "bottom" will be here?
3 months? 6 months? or a year?
Would love to hear what everybody thinks!!!
Best Answer
1130 points
sundarkambam answered one year ago …
Negative factors
1. Foreclosures are affecting everyone from every level of the society.
2.Loss of jobs and loss of income is putting pressure on everyone and there are mortgage defaults happening.
3. A double whammy of Falling home prices and rising debt on the house is making it quite difficult to restructure debts .Another factor is the "Mortgage walkers" who simply refuse to make payments even if they can and simply decide to walk away from it.
Positive factors
1. Falling interest rates are , hopefully, helping people to refinance their existing mortgages.
2. Lenders are , hopefully, willing to work along with delinquent borrowers to refinance their high cost mortgages.
3. The $168 Billion economic stimulus package passed by the congress will , hopefully, help people to refinance their existing loans into affordable loan package.
If you notice, the Positive factors have the word "Hopefully" .
Gut feeling : It will take a year or more before the housing market recovers.
Answers
3680 points
MNSL answered one year ago …
I think still no body knows depth of current credit bubble and it is very difficult to forecast. Today, I was listenig to discussion about housing market in another small developed country. Now they have realized gravity of current credit bubble. Even experts do not know amount of exposure. They expect some banks exposure to USA will effect badly during this year and they do not see bright picture the in housing market in these countries. This problem has gone beyond USA to other countries now.
Read more from MNSL flag as abuse great answer
265 points
MaverickInvestor answered one year ago …
I agree with sundarkambam - we're a year away from the bottom.
The news came out yesterday of a massive 11% drop in January! Read more at http://tinyurl.com/2qxayo
On the other hand, it always pays to keep in mind that there is no such thing as The Property Market. Every state / town / street is it's own market, and there are still good ones around.
Remember, too, all the adages from wealthy dudes down the ages - buy your straw hats in the winter, buy when the blood is running in the street, and so on.
in other words, you're looking at a tremendous buying opportunity right now!
951 points
Grudun answered one year ago …
I think the bottom is about a year off as well.
The amount of mortgages that adjust is peaking right now. So we should see the mortgages that just adjusted up going into forclosure in about 3-6 months right in the summer sales season. As these are absorbed by the market that should be the bottom(assuming that home loans stay at the same level of availability). And then in 2009 when the real estate season "Opens" in the spring we should see things start to recover.
