It's that time of the year … Some economists have come out with the the "second annual industry line", that the real estate bust will soon be over and 2008 will turn out to really be a happy new year for real estate investors. They say home prices will start rising again in 2008, although by just 1.5%.
Don’t believe it. Housing prices are going to fall longer and harder than most experts thought just a few months ago.
Edward Learner, director of the UCLA Anderson Forecast, predicts prices are headed down for at least the next five years, possibly 10. “Something unusual happened to real estate prices,” he says, “and when that happens, it always leads to comeuppance.” How much will prices fall? Leamer says 15% before values start rising again.[tags]real estate market, real estate bubble, housing market, housing bubble[/tags] San Diego CA real estate
n my opinon, anyone who is calling the bottom right now is either an extreme optimist or a liar. Aside from the dropping dollar, there’s very little to suggest that anyone’s home will increase in value as the general population wakes up to the trouble we got ourselves in with all this “cheap” credit. The easy money and appreciation that fueled this insane run-up will be a distant memory before we see the upside again. downtown San Diego real estate broker
I agree with you. The insane boom in housing over the past 15 years is in for a continuing and painful correction. The problem could only get worse if the Fed cuts rates and continues to make borrowing capital cheap. It will pull more people into the credit crunch. I live pretty much debt free. I would encourage everyone to get OUT of debt ASAP and invest in growth mutual funds, growth and income mutual funds, foreign markets with heavy emphasis on the Euro.
The Dollar will eventually come back, but the short term and near future will be rough in my opinion.
Houston Texas divorce lawyer
I definitely think the turn around is a few more months down the road…maybe sometime around late 2008. We have so much more to work out until then.
Shelly
San Diego County Real Estate
Mark my words, either Obama or Clinton will win – and the legal changes they bring will force a more equitable distribution of wealth AND risk. First, rebuild the social safety net, shredded by decades of rightwing mismanagement. Second, better govt regulation will bring more centralized control back over the markets. As time goes on, the federal govt will reassert its rightful authority over more sectors of the economy, and we will march together into a brighter future for our children!
Gerry
San Diego California real Estate
Yes house prices might fall even more than during the great depression but maybe there are just different drivers and each depression will be driven by completely different circumstances. Maybe a recession would not be a bad thing over the long run.
Harry
San Diego & Tijuana Dentistry