When will Real Estate Bottom?
Go back to my website and take the poll and see what others are saying.
Also take the time to review the Market Update video on my Home Page by Chris Schell who explains in detail 'How we got here' and 'Where we're going'. The most compelling statement and graph have to do with the housing stocks themselves, you will find a graphic display of a sharp turn around in housing stocks. Most economists agree that the Housing Market is the leading indicator of the Busniess Cycle. The Housing Market falls first before the Recession - Housing has been in a slump since the 4th Quarter 2005 and we just recently heard that we've been in a Recession for almost a year..!! The pending Housing Recovery will lead the ecomony out of the Recession through the Trough, which I believe we're in now, and into the Expansion Phase.
As a piece of history, the Stock Market crashed on October 19, 1987 and the funds moved into the Houseing Sector creating a serious Expansion Phase for about 3 years. The Housing Expansion peaked in the 1st Quarter of 1990 which lead into the Recession for about 3 years until the Trough Phase occurred during the Summer of 1993. The Expansion Phase begain in the 3rd Quarter of 1993 and the 1990 levels were not reached again until 1997 - the rest is history.
Conventional Residential Mortgage Rates are falling as I write this and we expect them to drop into the high 4% range over the next 3 - 7 days. The Fed is considering dropping their rate in half from 1% to .5%. Many homeowners are preparing to refinance their existing mortgages, however, buyers are still looking for a 'deep discount' on purchases. Sellers seem to be holding on to 2004 prices and the Buyer/Seller price gap is widening. Buy Low, Sell High - now is the time to buy, but not all sellers are ready to sell....??