The house market glut?

Question

Is there something more going on than what people are stating? I hear a lot of folks trying to stay optomistic about the housing market. But I think that the housing market is going to crash. Here is why: while others stay hopelessly optimistic that prices will level out or appreciate at a low level, I am more apt to believe that prices could drop 50-60% before we see a rise again.

Just look at all the speculation that has occured within the past few years. Also, look at how much growth has occured, it's only natural for things to readjust, posibbly to levels lower than they were 10 years ago.

Answer 1

I agree with you. 100% Look at the stock market boom in the ninety's and early 2000 then it crashed it has to even out and can't be sustained. It's all about perception. Last year I sat back and and listened to bloomberg say that natural gas prices were going to sky rocket and I watched that happen same with gas prices. It's all what the market demands. A few smart people understand that and are getting really rich. Sure you see a few middle class people making a couple of $100,000 off of the real estate market but It will get absorbed somewhere else. I'm holding out to buy my first house cause I know it's going to happen probably within the next 5 years.

Answer 2

I don't know where you live, however in my market (Florida, West Coast) Things are going to readjust, however for it to fall 50-60 we would have to be in a depression. The Federal Gov is not going to let that happen. The FED will keep that from happening Things are leveling out, however we are still see 4-6% increase in value. That's not bad. The investor who want to Flip and make a BIG profit is in for a surprise. Jane & John Doe buyer will still buy a house that is reasonalbly priced.

Answer 3

Housing sales are expected to "soften", so the demand for rental homes should increase. Probably a good time if you already own rental residences.