2006-07-02 14:05:34 · 7 answers · asked by bi-a-wok 1 in Business & Finance ➔ Renting & Real Estate
My crystal ball only works in reverse. And trends can go up and down locally in an area without regard to the market as a whole. So, for a good answer I'd have to know what area you are talking about.
However, in general: Demand for housing remains strong - the population is growing both from within and without. That helps keep prices up. At the same time, interest rates are likely to increase, which puts a downward pressure on prices.
Six months is a very short time frame and short term predicitons are almost always wrong.
Additionally, not even knowing what neighborhood or even state I'm tlaking about, there's just no way to make an educated guess.
If you mean the entire real estate market as an aggregate whole, then prices will probably come in for a soft landing in the next 6-12 months. There's no reason to expect a crash, and there's no reason to expect interest rates to remain so low. So the average home price six months from now will probably be just slightly lower than it is now.
In some areas, though, it might be 25%-50% higher while other small areas might experience short-term crashing . Information about the aggregate market is pretty useless unless you are a high-level investor. But if that was the case, this is not where you would be asking the question.
2006-07-02 14:14:47 · answer #1 · answered by Waynez 4 · 1⤊ 0⤋
I agree with Tracy. All of the experts say that the real estate market is declining but if you are wanting to buy now I have a little advice (I'm not a professional, just speaking from experience). My husband and I bought our first home (a condo) in an area that had just been annexed by the city and was just beginning to be built up. We figured that we'd at least get what we paid in a few years. It has only been 6 months and we have already made 14k without any major renovations! The market may be down but I think you can still make money if you find a good area. If you are thinking about selling then I have no clue!
2006-07-02 21:21:32 · answer #2 · answered by Jess 3 · 0⤊ 0⤋
On the future of real estate in 6 months i don't think anyone can give you a strong opinion. However, take this into consideration. IN the past few years many people have taken out these "stupid" loan options. Such as arm's(all interest) adjustable, and 30 year loans (first 15 years mostly interest). Which makes it more affordable for the comman person. Leaving people in serious debt. Many people took out arm's in a few years ago and there almost up and the adjustable mortages increased many peoples mortgage payments. Look out for some serious amounts of foreclosed homes in the near future. In turn will lead to a serious drop in the value of real estate. There are many people in this country who are how can i say it nicely gullible or naive and listen to real estate agents. They ask the agents (before they buy the property) if real estate is going down? To me, that is a dumb *** question to ask a real estate agent. Obviously he or she is going to say no. They want u to buy the property and make the commision. All do respect but there almost as bad as car salesman. I would also be careful of what so called 'experts " have to say about real estate going up or down. They could have a personal agenda. Such as they might own real estate themselve. They don't want it to go down. Finally don't take my word for it. Do the research.These houses are ridiculous , i see ghetto homes going for over a hundred thousand.
2006-07-03 02:52:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Not sure, but............
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
http://sandiegofsbo.blogspot.com
http://www.brokerforyou.com/blogger/index.html
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.com
http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.la-jolla-real-estate.info
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com
2006-07-05 13:53:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Gradually declining. Interest rates are going up and demand is going down. 6 out of 10 houses sold today are second houses.
2006-07-02 21:11:35 · answer #5 · answered by Tracy 2 · 0⤊ 0⤋
I hope it will become a buyers market. My fiance and I want to buy a home but right now can't afford much.
2006-07-03 03:13:01 · answer #6 · answered by jodneko 5 · 0⤊ 0⤋
lower...sellers will lower their prices as more homes for sale flood the market...
2006-07-02 23:21:09 · answer #7 · answered by mayigniteunderpressure 3 · 0⤊ 0⤋