With tighter lending practices and record numbers of foreclosures, the country will find it more difficult to recover from the current housing slowdown. On a positive note, immigration growth is expected to create a demand for more homes over the next decade, according to a study released in June 2008, by the Joint Center for Housing Studies at Harvard University.
“The State of the Nation’s Housing 2008” reports that a return to home affordability levels seen in 2000 will take a combination of continued home-price declines, interest rate reductions, rent deflation, and a boost in consumer spending. Generally housing markets recover after the economy has entered a recession and a combination of falling mortgage interest rates and house prices have improved housing affordability.
The report adds that the credit crunch stemming from the subprime mortgage crises will likely continue to drag on the nation’s economy across several sectors for an unforeseeable amount of time. Immigration is expected to keep up with its current 1.2 million annual pace over the next decade, which coupled with other social and cultural factors, should feed a consistent rise in demand for more housing. San Diego County California real estate
The extraordinarily high prices for San Diego real estate really make the investment potential very risky when the average rent doesn’t come anywhere near the carrying charges an owner has to pay.
Patrick
SD Attorney
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.
Sarah
Lasik Surgery
Housing prices and sales will continue to decline. Expect 3 years before the bottom, Commerical real-estate will suffer a steep decline as well.
San Diego Realtor