The further question is, whose bottom is it going to hit?
More people on the planet and no new land being created means it never will hit bottom.
Don't the Chicken Little hysterics in the US Junk Media EVER get tired of being completely wrong with their panic and fear mongering?
Sadly in SoFlo, the democrat tax&spenders and the insurance disaster have made it impossible for many new prospective buyers to enter the market. A new buyer is hit with astronomical taxation compared to those who bought at a much lower price earlier and were sheltered while property taxes reached tyranical levels. One could end up paying 5 or 6 times the amount of property tax as their neighbor because too many socialist democrats in local government went wild when they decided to abuse the temporary rise in housing values.
SoFlo can't recover until they get rid of their socialist democrats. We're done down here.
Insurance is another major pestilence, but the Florida Repukeblicans (think along the folks who brought you "Mel 'I don' see no illeeegals' Martinez" )are as much to blame as the brainless socialist dimwitocrats.
So now when the buyer calculates the mortgage and sees that it works out to a reasonable payment, the check out the taxes and insurance on top of it. Suddenly they realize it's almost as much as the mortgage. Tennessee and the Carolinas suddenly seem much warmer in the winter...
“The subprime sector has essentially died,....”
....I don’t see that as a bad thing...
It depends on what part of the country you live in. I’m in northern Alabama and the housing market is booming here!
I have been through 3 of these events....and they are all similar...the smart-BUYERS buy low and sell high....the others are the "suckers" that buy high and panic and sell low....
The really smart home owners BUY and HOLD in a great location.....and do NOT look to housing as an investment.....
They are available around here (northern VA)
There's some evidence that the jumbo market is slowly returning, but it's not functioning normally yet.
If by normally they mean allowing inflated appraisals for overpriced properties, then it will never again be normal, nor should it. The jumbo market is an artificial construct and in some places jumbos have lower risk than conforming loans in others.
There is no problem in the housing market. There was never a problem with mortgages or housing.
Sincerely,
Toddsterpatriot
I’m an optimist that says we’re still a year away!
Lay the run up in real estate over the chart for stocks back in 2000 and it will be identical. Took several years of recovery for the stock market, as things were priced too high for their real value. Same w/ real estate. Pricing is ridiculous.
On the beach in Florida (oceanfront single family) they are still in the $1500-$2000 per square foot range. Until they get realistic and cut that in half MINIMUM, you’re going to see a real lag in sales.
Since the market was overinflated it didn’t take a genius to see a downturn was coming. And I’m not a genius concerning the housing market...or any market. But it makes me shake my head to read the doom and gloomers predictions of utter catastrophe because of the dip. Yes folks, we’re doomed...no doubt about it. We’ll all be living in tarpaper shacks and holes in the side of the road. No one is ever going to buy or sell a house again. None will ever be built anymore. Get out your tin cup, and practice your begging techniques.(smirk)
About the same time oil stops going up.
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Just a hunch, but it seems that the only places prices are going down or sales lagging are in the overcrowded and over priced areas. I live in Denver and prices are holding fairly well and sales, while down a bit, are still reasonble.
It'll hit bottom when a $200,000 house in California sells for $200,000 instead of $1,000,000.
Bilderbergers know.
At exactly the momnent I decide to sell my house in a blue state and move to a red state to while away my waning days on the beach and the golf course.
round here they expect lower and median priced homes to fall to 2000 levels
(nashville metro)
it just started here...the slowdown
IMO, we’ve seen nothing yet and this will become a global issue.