2006-11-14 06:36:36 · 15 answers · asked by Steven P 1 in Business & Finance ➔ Renting & Real Estate
In some markets the overinflated prices will come back to being more reasonable or sellers will need to slighty underprice for quick salesz. In other markets, it will simply plateau for a time as the market is saturated, and the prices wont fall, neccessarily, but you'll have more room for negotiation as its a buyer's market.
Eventually, in probably 2-3 years, things will be rising agian. You'/ll still see increases over the next year or two, but more like 5-10% instead of 20-40% like the last 5 years.
2006-11-14 06:40:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Since the interest rate rise last week people are getting slightly nervous. Some are predicting a following rise in interest in February and then a further one in May.
If this does occur, new home buyers will be more cautious about getting a mortage bigger than they can really afford for fear the repayments will be unaffordable. This could force house prices to lower turning the situation into a buyers market rather than a sellers.
Prices are starting to stagnate in many parts of the country but we are yet to see many drops but this could all be possible in the next year.
2006-11-14 06:49:16 · answer #2 · answered by kayleigh e 3 · 0⤊ 0⤋
According to moody's research, home prices will decline nationally a little over 3% for the first time since the great depression. Moody's reports that some areas such as SW Florida could see another 15% drop in price during '07.
As a former real estate investor, I tend to agree with them.
There are some links to Moody's & other research services @
http://www.advancedwealthsolutions.com
Good luck!
2006-11-14 06:42:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Houses prices in my town have fallen in the the last 6 months by about 5%. (This is after double digit increases over the previous 5 years.) I don't think they will crash nationally but some places will see a small correction.
2006-11-14 20:32:17 · answer #4 · answered by Petra 2 · 0⤊ 0⤋
Predictably yes, but as we all know the property market is very unstable. It really all depends on what happens with global warming, because if the government doesn't do anything, there will be, apart from major floods and another ice age, an economy crisis in England. So be prepared for property prices to go haywire!
hope this helps!
Merry Christmas!
2006-11-14 06:41:42 · answer #5 · answered by Deaks 2 · 0⤊ 1⤋
Yes quite possible, but only in the short term, in the long term your investment is "Safe as houses"!! If you buy a house today for 100k it may well drop to 90k in the next year or so, (but that's doubtful) what is for sure is that in 10 years it will be worth at least double.
What could possibly stop it?
2006-11-14 06:58:32 · answer #6 · answered by budding author 7 · 0⤊ 0⤋
no matter what land land and homes are always worth more than a crashed stock market.
Hey michael b, do you have any houses in hawaii you want to sell then? ;)
2006-11-14 11:45:06 · answer #7 · answered by sweet lily 1 · 0⤊ 0⤋
YES! You just have to be patient and wait. The government wants to them to fall.
2006-11-14 06:37:59 · answer #8 · answered by veeD 1 · 0⤊ 0⤋
Probably the best source is this bloke - Roger Bootle - top economist. He feels it will fall ( correction - he calls it).
2006-11-15 02:11:04 · answer #9 · answered by medicine man 2 · 0⤊ 0⤋
Welll proberly in some places i'll believe but some wil go up slightly higher like 5.4% increase but i'll don't know
2006-11-14 06:39:10 · answer #10 · answered by ? 2 · 0⤊ 0⤋