When will the Real Estate Market pick up again?

Question

I live in Arizona and the market is completely dead, nothing is selling...I was curious to when people think the market will become a sellers market again?

Answer 1

No ones knows and if they did they would make a $ killing! I would guess years of stagnant pricing in some/many markets, like almost a decade!

But real estate is all local, and all about location. Some places will do well (generally not ones that went crazy before). Some locations will do poorly. If you are in a location that had a large percentage of high interest rate or subprime loans, you are in for a long wait!

Good luck!

Answer 2

As with anything else to include the stock market, things do go flat because of certain reason.

It really has nothing to do with regulations or changing the various laws.

All markets go through an adjustment period. This is happening with the real estate market NOW.

We had an adjustment period in 1982 as well as 1992.

There are people that get paid to tell you when this market will change the various trends that will cause the market to change.

I suggest you keep a keen eye on the trends and look for the signs that the market is changing.

You can do this by reading the various real estate trade magazines, keeping abreast of the situation by reading the newspapers.

Once this adjustment period adjust and settles, you will find that things will once again be back to where they were.

It might take a little longer than other times, but they will settle.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Real Estate is cyclical. Things usually go in flows of about 10 years. That means every 10 years there is a top off, followed by average times then a low point, then more average times back to a top off. This past top off though I think was outside the normal cycle. This cycle was starting normally but then fed by poor credit practices. Because it was an unnatural cycle I think the next peak will not be much higher than the boom prices we saw in the recent past.

as for how I think the market will play out, I think that we have about 24 more months of decline. At that point I think the market will hit bottom. You may ask why i think that. I base that number on the ARM's that will be resetting. In 24 months most of the people that should not have gotten loans will be out of the picture. the bulk of the houses that are going to go into foreclosure will have hit.

After that we will be in a stagnant market. Prices will remain flat as things recover. Houses will still sit long, but price declines will stop. I think this will continue for about another 24 months. during this time the remaining few people that got onto the poor lending bandwagon will fall out of the woodwork but by this point they won't have any significant affect on the market.

After that we will start to see a rise in prices. It will be slow and steady as real estate prices are set by what people will pay for houses. I believe the rise will happen slowly as there will be many people who remember getting burned by the whole "owning your own home" process. these people will return cautiously. those kids that were affected by having their home taken away will also remember and be very cautious when treading those waters of home ownership.

So now we are 4 years into the future. I think that slow steady rise of prices will last for at least 4-6 years before they peak out. I believe the slow steady rise will be somewhere from 1.5 to 2.5 percent. With that we are looking to 8 to 10 years out. I think that at that point prices will be flat with what the peak was at in boom or slight (less than 10%) higher.

Am I am expert? Not by far. I am an investor that has a few rental properties and have followed the real estate market for the last 10 years and researched the cyclical markets of the past.

Answer 4

I think the market is going to stay flat until the '08 election. But it WILL go back up again...it always does. Usually goes in waves about 5-7 years. People will always need a place to live. And with divorce, drugs, alcoholism, etc...real estate will always be a great investment.

Answer 5

The rate of inflation in the markets equity was insane. in the last 2 years equity want to up from 300 - 500% mostltly due to rise of all of these hard money loans.

crappy houses that would have gone for 60,000 - $80,000 now are over valued from 300,000 to over half a million.

in order to adjust the market back to normal 2 things would have to happen.

1. the minimum wage would have to rise accourdingly so that tthese prices would be even reachable agian. and like hell anyone is gonna pay some kid 20 - $35 an hour to flip burgers, so that aint gonna happen.

2. the banks would have to take a loss on all of the hundreds of thousands of coming foreclosers that are bound to happen. and sell the houses at their actual far market value.

like hell thats gonna happen they will hold on to their empty equity for as long as they have and bring the whole country down if they have to.

the markets is gonna get alot worse before it gets better and if your an agent i suggest getting another job maybe a telemarketer who will call the homeowners at all hours of the night who arew bound to defalt on their loans.

Answer 6

Not for a long time because the mortgage market has been using bad finance practices and until that is changed with new regulations it won't get better.

Answer 7

Minimum 5 years before it becomes a sellers market. If your house isn't selling, lower the price. http://www.gaithersburg-homes.com/

Answer 8

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