US home prices down by record amount in January - time to buy some real estate???
http://finance.yahoo.com/news/US-home-price-drops-set-apf-14794786.html
Best Answer
678 points
BoxCar answered 8 months ago …
Google "Mortgage Resets" to realize 2009 is a brief respite/subsiding of resets.
Majority of resets are still ahead. Means we'll see further declines in real estate~25%
Obama may walk on water- resets are cast in concrete based on real estate bubble
and unless gov't continues to "Float the Bloat" (GM decision says we can't anymore)
the price bubbles have to deflate. Alternative is hyperinflation, like in Zwambe Africa
Best guess is everything has to come down in price so we can compete with "Slave
Wages" of China. So best advice is to WAIT, we ain't seen nothin' yet. Anyone who
doesn't believe this is initial phase of 2nd Great Depression has no clue of history-
that after every Great War a Great Depression occurs. WWII did not end with Abomb
It continued in guise of Cold War so guess what's next? On top of this is the arrival
of a 4th generation where aged and newborn are both alive but neither working.
When post war baby boomer begin to retire, it pulls the plug on draining economy
since 3 generations are living off of 1 generation like "Who is working? no one is"
This is what caused economic collapse again and again like clockwork in a society
that is sun-synchronized- Google "Solar Mortality Theory" to understand why and
realize that NO ONE in charge has a DAMN CLUE as to what is going wrong- duh!
Let me know when intelligent life is discovered- I don't see any
Answers
265 points
fuzball answered 8 months ago …
Buying into real estate covers a lot of territory. If you are looking to buy a home for your use and hold for more that five years, you might think waiting longer for prices to go even lower might be a good idea. And, it may be so. But, I don't think the housing market will collapse, and also don't think housing prices will keep going down much more than presently exhibited. There has been an unprecedented and mind boggling effort by the Fed to prevent a depression and, too, to minimize recession effects using tools not availably back in the "Great Depression" of the thirties. It will probably work, I think, to stabilize the economy and minimize further depreciation.
If you were thinking "buying a house" when you asked your question, can you afford to buy now and are you secure in taking on that responsibility, financially speaking? If so, buying that house now for you to live in may be one of your best investing decisions what with the bargain price you paid and interest rates at fantasticly low numbers. Pretty much a "no brainer" in my opinion.
If you, on the other hand, are thinking of playing the real estate market as a trader, by investing in home builders, or as a house "flipper", I think you should do a lot of homework first before jumping in thinking the market has bottomed. It hasn't, yet..
3963 points
MNSL answered 8 months ago …
I think first home buyers should do more and more research before buying their houses in the next 05 years.
They should learn property cycle and business cycle as well. In addition current scenario is completely different from the past cycles.
