But slowly, over time many of these folks will need to sell. Death, bankruptcy, divorce..all will cause a forced sale. These forced sales will continue to keep prices down..for a long time.
But over time these home values will recover too. This is a short-term problem.
Depends on what you mean by ‘short term’.
Housing is still 50 percent overpriced. Assuming 3 percent appreciation, the decline hasn’t quite brought prices down to their historical rates.
You are right that in the long run, in 10 years or so, that the prices will increase, but that is a long time to watch your equity vanish.
Personally, I’d buy the house and rent it out even if rent failed to cover the entire mortgage. Yes, it’s