Is the housing market gonna turn south?
Question: When is the Real Estate Bubble going to POP?
I’ve got my own opinions and wondered what you all thought. My forecast is that we have another 9-12 months before we start seeing any type of major slowdown in the Real Estate Market.
Here’s some of the information I’ve saved in my research for a couple seminars I’ve taught.
FACT: Greenspan recently acknowledged a possible Real Estate Bubble
FACT: USA Today reported last week the foreclosure rate is the highest it has been in last 30years (my guess is it will continue to climb)
FACT: Rates are the lowest they’ve been in 40years and they eventually have to come back up.
FACT: Certain market areas in the country are already seeing declines in resale home values.
FACT: The Personal Savings Rate for Americans has been the lowest since the Depression Era in the 1930’s. (has fluctuated over the past two years from -2% to 1%)
FACT: More people have filed for more bankruptcy than have graduated from college.
FACT: There is over 1.4trillion dollars in consumer credit card debt across the nation and growing!
FACT: Personal Income is not increasing at any significant rate to compensate for a higher cost of living (higher home prices)
I’ve got plenty more and could go on. I think it’s quite interesting.
Answer: When the stock market rebounds I think the Real Estate Market will most likely stop going up. I have no idea when this will happen probably next year at the earliest. One more thing to add to your list of reasons as to why we might be at the top of the market is that REIT and homebuilder stocks seems to have peaked already. Lets put it this way, I am not about to refinance my property, and take $100,000 out, and invest in the stock market anytime soon.
I will stick with real-estate. It’s much safer than the stock market rollercoaster. I just can’t deal with that, it’s to hard on my blood pressure, nerves, and wallet …..
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