2007-11-06 02:05:59 · 6 answers · asked by shutterbug 1 in Business & Finance ➔ Renting & Real Estate
I don't think you will see any real improvement until late 2009. I don't think we are anywhere near this cycle being at the bottom yet, may be late 2008 this cycle will bottom out.
2007-11-06 02:14:40 · answer #1 · answered by Jan Luv 7 · 0⤊ 0⤋
Remember the foreclosures are predominantly in certain neighborhoods an certain parts of the country. People have not kept it in perspective, which is part of the problem. BBC had a great article on it today- check it out- they are not afraid to say what is not PC here to say.
I have seen more action on my property in the last 3 weeks than I had in the last year- serious people, I think, know the bottom has been hit. I'm taking the opportunity to buy another home now, in the spring prices will go up, that's my prediction- and I said this a month ago- and it's happening so...
2007-11-06 04:37:05 · answer #2 · answered by Down to earth 4 · 0⤊ 0⤋
in the last 12 months, $330 million dollars of adjustable rate mortgages reset. In the next 12 months, $1 trillion is scheduled to reset. And $1 trillion in the following year. It will be 2010 before the dust settles and there are going to be tens of thousands of foreclosures. Life, real estate and weather all have cycles. Life is history. We just came through a seven-year cycle of unprecedented increase in real estate values. Many areas of the country were experiencing 10% to 24% appreciation of value each year. Houses have more than doubled in price over the last 7 years. Well, if history repeats itself, after a 7 yr growth period, we are facing a 7-yr declining period. With supply and demand, and the fact that most Americans live beyond their means, with the belief that they don't need to save because their house is appreciating, this downward trend may be very severe. I just sold my townhouse...the buyers put 20% down and their monthly payment is $1,869 for principal, interest taxes and Assoc Dues. I rented an identical townhouse 2 blocks away for a 4 year lease of $1,100 per month water, scavenger, taxes and Assoc Dues are included in the rent. My rental unit is saving me over $960 per month and I don't have equity to dissipate, fear of rising taxes and my money is now in the bank earning 5.35% interest. In four years, I plan to purchase one of these townhouses again, but for about $90,000 less than I sold mine for. And I will have saved $46,000 in living expenses in that 4-yr period and earned $12,000 in interest.
This is the beginning and anybody that is thinking of selling, should do so NOW. The values may erode at 10% for the next 4 years
2007-11-06 07:36:44 · answer #3 · answered by mike r 2 · 0⤊ 0⤋
For a while, it will probably last 2 to 5 years before we even get out of the ditch. There is always a BUY cycle and SELL cycle. Right now is the Buy cycle, homes will go up agian in a few more years.
Forclosure is slowly droping 27.58 % to 18.22 % in the past year. Homes are desprete to sell, you can get a 500k home for 300k. This will last for a few more years. Then i bet you houses will start appreciating agian, maybe starting at 5%.
2007-11-06 02:25:12 · answer #4 · answered by I_know_it_ALL 3 · 0⤊ 1⤋
As the government gets more involved and continues to take steps to bolster the housing market, things will improve. There are plenty of predictions that spring 2008 should start the upswing.
2007-11-06 03:30:55 · answer #5 · answered by godged 7 · 1⤊ 0⤋
At least another year down the road. Some of the risky ARM's have not yet their 'rate change' date. As more 'mature' you will see more foreclosures.
2007-11-06 02:15:28 · answer #6 · answered by acermill 7 · 0⤊ 1⤋