2007-03-24 16:56:18 · 7 answers · asked by Erik 2 in Business & Finance ➔ Renting & Real Estate
The current market correction will last as long as public opinion continues to play into the marketers hands. I see this downward trend slowing down a bit but not bottoming out for a few years. Some markets are at a standstill and some raising cautiously. The tighter lending guidelines that are iminent will have fewer people qualifying. This market is reactionary and responds to supply and demand. Buyers will set its pace regardless of interest rates. When the market does return to a growth cycle it wont be the rampant pace we last went through. This is a cyclical thing and the pendulum has yet to complete its negative swing. Look for an overall improvement in around 1 - 2 years.
2007-03-24 18:48:40 · answer #1 · answered by Myron 4 · 2⤊ 0⤋
there is nobody who can answer than question, not even greenspan or nostradamus.
real estate is not declining in many parts of the world. in some areas that experience a decline, its because of many complex factors. you should look out when those factors change to understand why the decline is happening.
in some areas, the decline in residential property is because of the NPAs or open risky positions by banks and mortgage companies, its because they went aggresive when lending without doing their due dilligence. and they also approached re-mortgage with equal bullishness. when loan takers defaulted (they defaulted at the first instance, thats why the second round of mortgage offerers chased to secure their business), and the % of default was high, there was a re rating of the credit worthiness and likelyhood of these companies being able to repay their own loans. this fear of bankruptcy or cash crunch caused the slide in the overheated markets in some part, because of which the global equity market had jitters and caused a mini meltdown in some parts.
some property markets like dubai (http://www.emaar.com) and goa (http://www.goaproperty.co.in/goa_real_estate.htm) are still booming. even in the usa, only the residential property market has been hit, but the commercial properties and stocks around them are still rated as buy / hold.
if your market is stable or declining, and you think it will stop declining after some time, dont sell. in fact when you think it bottoms out, buy. if your market is rising, buy to sell when you think it is peaking.
enjoy !
2007-03-25 01:41:51 · answer #2 · answered by L 1 · 0⤊ 0⤋
In my area, prices have NOT declined, but rather the market has slowed a bit....There isn't a buying frenzy like I saw last year....I guess it depends where you live, in inflated markets, the decline will continue for a while....As long as the fed doesn't raise rates, I think the market will be stagnate for a while, but if the fed does raise long term rates, the market will really get hit....And expect more of a correction, especially in inflated markets like California....
2007-03-25 00:16:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Once the foreclosures steady, the banks stop lending to anyone, the inventory decreases, there will be a better situation for guestimates
2007-03-25 05:26:14 · answer #4 · answered by mstrofmymindyesthisistrue 1 · 0⤊ 0⤋
Till there is a honest market. It is was a dishonest or out right fraud in the market that caesed this now crashing market.
http://www.breakingbubble.com/
2007-03-25 00:40:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
We haven't even seen the beginning of the real decline.
Hold onto your hats, it's going to be a bumpy ride.
2007-03-25 00:32:15 · answer #6 · answered by Gem 7 · 1⤊ 0⤋
well for most, that would be the million dollar question. If anyone has the answer to that, please have them pass it along.....to everyone!!!!
2007-03-25 00:01:18 · answer #7 · answered by bpl 5 · 0⤊ 0⤋