but there are always new buyers coming into the market, through birth and immigration. The demographic push means that real estate prices will rise over time
This has now changed. As people can no longer take their fake money out of their rising house equity, in the next 20 years you will see millions of people HAVING to sell their homes and moving to cheaper homes, just to survive. There will be a market for homes in the low end and for apartments. But the market for the 2,400 square foot homes will be dead and gone. What, you think all the new people coming from Mexico are going to afford $400k homes, LOL. The end is near my friend. I currenty own 2 homes right now- 1 in WI and 1 in IL. I don't expect any appreciation in the future, but that's ok as they are paid off and I use them. I feel sorry for those buying a home today with a big mortgage, as they are going to be screwed.
Great post. Really liked it.
I couldn't disagree more. This is called a correction, not the beginning of the end. Real estate has consistantly appreciated over time and I don't see any reason why it wouldn't continue to do so. Is the pool of buyers going to shrink? Absolutely. However, there will always be people needing more space, or relocating for a job or looking to invest. The only people that are really hurting right now are the ones who purchased their home in the last few years and got in over their ends and now need to try and sell. Families with dual incomes should not have a problem with a mortgage of a $400,000 home. I believe the market will hit bottom at some point this year and will stabilize in the next 12-15 months. Then about 1-2 years after that you'll start seeing housing appreciate back at normal levels. However, if mortgage rates jump up to 8% or above, all bets are off.
Prices are what they are. Many first time buyers buys because they need to buy. The switch from home ownership from renting is a natural step. It's many times a long-tirm investment. Even with some loss in equity, paying rent isn't the smartest move either.
Yes, a Realtor may preach "buy! buy! buy!" (not unlike the backstreet boys), but life goes on and people will always look to own property.
Commenting by HaloScan
