Does anyone out there have any idea on when they think the housing market will pickup?

Answer 1

First, it depends what part of the country you live in. The general answer for the country as a whole is expected to be after the summer of 2008 although some stretch that out until 2009 since the introductory rates will continue to reset for another 18 months.

On Yahoo today there was a report that stated:

"However, many analysts believe that sales and prices will fall further as the housing market receives additional blows from rising default rates that are dumping more homes on an already glutted market and causing lenders to tighten standards. These factors have made it harder for potential borrowers to qualify for loans."

"Sen. Charles Schumer, D-N.Y., said the latest news on housing showed that... as many as 2 million homeowners could lose their homes in the coming 18 months as low introductory rates on subprime mortgages, loans offered to people with weak credit histories, reset at sharply higher levels."

In Fresno CA, there are many things that are affecting the market...

First, most of the home prices were driven up by investors from out of the area which expected to flip homes for a profit in a short period of time... rates were not a concern and neither was rental income vs. mortgage payments. When the prices quit rising, the investors found themselves in a monthly loss of income as they could not sell for a profit or rent for a high enough rent to cover the monthly mortgage payments.

Second, home values climbed faster than local area incomes and became mostly out of reach for the average home buyer.

Third, Fresno experienced some huge hits to the local economy with the Orange freeze followed by the ecoli break out in the lettuce and spinach crops.

Fourth, throw in the mix all the people who purchased homes with subprime loans and stated programs who really never qualified in the first place... then add in the adjustable rate mortgages which are now adjusting and increasing those payments by several hundred dollars a month....

All this combined over the last few years has put the foreclosure rate in Fresno CA higher than the national average with very few buyers qualifed to buy the over supply of homes in the area. And as values fall with people owing much more than the current value of their homes, many people are electing to walk away. It is hard to fight to keep a home that is worth $300k that you owe $360k on.

But on the flip side, I many reports which has many people bailing out of California and keeping prices up in neighboring states. Some states even report a gain in home values even though sales nationwide are slow.

So, in Fresno CA.... I would say it is going to get A LOT worse before it gets better. Maybe in mid 2009. But nationwide, it depends on your area and local economy.

Answer 2

I'd say in 4 to 5 years. Look at how bad the foreclosure rate is right now. In my neck of the woods, in just my zip code there are 263 foreclosures listed (sing family, town houses and condos). Unbelievable how bad it has become. We initially put our house on the market last June and had lots of people look but no one bought. We have too much competition between the foreclosures, interest rate, economy and new home prices dropping.

Answer 3

That is the 64billion dollar question that everyone would like to have the answer to so they could rush out and buy up all the underpriced houses out there and sell them for a huge profit. Yes?
Well, for what it's worth...and perhaps not much...it will improve when buyers feel confident that prices have stabilized and absorb the inventory of houses available. The timing will be different in all areas of our country depending on jobs available, population expansion/contraction, etc.

Answer 4

In my area - Northern Colorado - I think that it will be in two years.

Reason for my thinking:

Most of the problems are the sublime loans - no jobs, weather, or other factors - in two years, the banks will have either foreclosured on those problem loans, or the homeowners found a way to refinance successfully.

Answer 5

Like Bostonian said, you will get a different answer from everyone that you ask. "Experts" are predicting 2 years or so, but there are so many factors that go into making that call it's nearly impossible to predict.

Answer 6

Ask 100 people and you'll get 100 guesses. Nobody knows for sure. I'd look it up in my crystal ball, but it's in the Magic Shop for its 10,000 prognostication checkup.

Answer 7

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Answer 8

after the war is over and we quit spending 750 million a day over there so in about ten years

Answer 9

Supposedly the worst of it should be the summer of 08....Good Luck