Good points. Thank you. I agree that the bottom is still some time out. These markets take some time to deflate. Lots of people will hang onto the home until they realize they need to sell or have to sell, then the REAL selling prices start kicking in.
I’m not saying the bottom can’t hit in 2 years or less, but I don’t expect that to happen. I think we will be near bottom late next year and then 2 or 3 years sliding to the bottom bottom, before lots of years of flat, stable home prices with little to know appreciation.
That assumes we don’t see mASSive inflation return. If that is the case, then inflation will catch the falling house prices. But who cares? Mortgage interest rates will be 10% and there will be NO selling homes anyway. Musical chairs and the music will have stopped. Folks will feel like they have more money in their homes but their won’t be any way to liquidate it.
And we won’t be seeing all them home equity loans to by flat screen HDTV’s, boasts, vacations, or new SUV’s neither.