Lately I have had a lot of discussions with my friends and peers on when the Real Estate market is going to bottom out. So many non homeowners are waiting for the "bottom" to hit and get into a house before the floodgates open and we see another upward swing in home prices. As with anything supply and demand need to be in sync to reach market stability. Those are the normal rules but with this market there are so many exterior factors at work and we have no idea what the supply will look like. The supply is coming from people who sell, foreclose, or die. The foreclosures are what is making this market so interesting. Another big factor are mortgages rates, they are very low right now and it is very enticing.
There are thousands of articles and blogs that are following this closely and my buddy Jake forwarded me this link...
www.drhousingbubble.com
This is a very analytical and information dense blog that I have started to check on a daily basis.
I am exercising patience, I think that the supply will continue to increase and drive down prices through the next 2 years. Below is an interesting chart that shows the exotic mortgages and when they will cause defaults.
No comments:
Post a Comment