Do you think housing prices will go down?

Question

The fed to keep hiking?

Answer 1

Depends on the location. Some markets are still going up, others are staying even and some have dropped.

Answer 2

I think in general there will be a market correction in housing prices. As others have mentioned, it is all about supply and demand and some areas will still have increasing home prices, but some of the hot spots of the past few years are seeing a drop in prices - as they should. There definitely won't be a "burst of a bubble" where we see rapid declines in home prices, but we will definitely see a correction over the next 2 years.

As far as the Fed is concerned, the jobs report just came out today, and showed the US economy created 128,000 new jobs last month. That is a little on the soft side, and that figure combined with other reports out there show the economy is slowing. There is a Fed meeting this month, and if the economic data coming in still shows a slowing economy, the Fed will not raise rates. The only reason the Fed raises rates is to combat inflation, and if they see the economy is growing at a slow steady pace, they will leave things alone.

Answer 3

i don't think the fed will keep hiking rates been the economy seems steady and they are at pretty average rates, however inflation will continue to be an issue,


yes, I do believe that house prices will plummet some, too much atypical appreciation in the last four years, due to these interest only loans which many are only fixed for like ywo years and then the rate goes up, I think that a sea of houses could enter the market, I don' see more than a 10 percent drop though, i live 15 miles south of portland, ore, where are you?

jason

Answer 4

There is one important point to remember about this: ALL REAL ESTATE IS LOCAL!! There is no national real estate market. This is unlike NASDAQ, or other stock exchanges. If a stock's price goes down in Poughkeepsie, NY it is also down in Pomona, CA. The price of a home in one locality has very little, if any, bearing on the price of another property located thousands of miles away.

Now, you asked for an opinion - yes, there are areas where prices have dramatically outstripped value, and prices will thus fall. But this will be temporary. Even if you buy at the top of an overheated market, if you can hold on to the property for several years you will not lose.

And - NO, in most areas prices will not decline. Simply put: "They're not making any more land."

If you carefully avoid paying the seller's usually inflated price, and make sure you are buying a well-built home that will not need extensive, expensive repairs, and buy into a safe area with good schools - you will be just fine. Your home will appreciate, and all the other values of home ownership will be yours to comfortably enjoy.

Answer 5

I agree with BrokenRomeo.

Good time to buy?

In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.

If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.

If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.

Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).

http://money.cnn.com/2006/08/24/news/economy/newhomes/index.htm
http://money.cnn.com/2006/08/23/news/economy/homesales/index.htm

Answer 6

In Toronto, housing prices have gone through the roof!! The housing prices just keep going up!! Average price of a 3brm all brick bungalow is around 375 thousand dollars(depending on area maybe higher)

Answer 7

Yes. I think that there will be some further declines in house prices in some major markets during the next six months.

Answer 8

That depends intirely on where and when you purchased. I think there are definatly some areas that the cost homes was already overpriced and the economy pushed them higher. Those home values will likely go down temporarily but home values always seem to go up over time.

Answer 9

Currently there are 9 homes 4 sale for every one buyer.
Sounds like the price will be dropping to me.

Answer 10

They fluctuate a bit. When interest rates are low, it brings prices up some. And vice versa. MOstly they don't go down though. Everybody gotta live somewhere.