I think its already been proven that we hit bottom actually. The only question now is how soon will it start recovering and by how much
The market crash has certainly devastated the economy. However, most of the banks and mortgage holders have already failed. At this point though, the mortgage rates are very low and that encourages people to go ahead and purchase homes, even if it is perhaps with a little more caution than in the past.
Houses are selling at below market value, or close to it. It has definitely hit the bottom. Things will change, but not for a while. It is going to take some time, because people need to have good jobs in order to buy a home. The economy is still too bad for the housing market.
The real estate market went into its current slump for two primary reasons. First, the manipulation by mortgage lenders of sub-prime loans so no one knew whether they were buying into a good investment or a bad investment created a situation that was unsustainable in the long run.
The second reason lies in the attitude of home buyers in America. We have "bought into" the concept that it is somehow not only a good thing, but a RIGHT of every American to won his/her own home.
This is not feasible. Owning a home is an expensive business. You do not necessarily save money by owning your own home. Not everyone is in a position financially to own their own home. These are facts that we have forgotten for the past several decades.
At one time it was considered very amusing to bankers when "immigrants" who had been in America for 10 or 15 years came into the bank with money they had saved stuffed in pillow cases--and then paid cash for their house.
I know. My father was one of those immigrants.
If home buying continues to border on being an impulse buy--"instant gratification" the housing bubble could happen again.
I believe that the housing market will not recover as long as there aren't enough new jobs being created. Currently, there are simply too many people out of work. Without a steady income, those people will very likely not be able to make the mortgage payments on their homes, and could lose their properties to foreclosure. The only solution that I see out of the real estate crisis is healthy job growth.
The real estate market has hit a major low. Houses are selling for small percentages of what they were purchased for years before. Houses are sitting on the market for years, and more banks are being forced to foreclose on houses. Really, the real estate market has no where to go but up.
The real estate market has taken quite a few hits recently, but the fact remains that people still need a place to live, and with the current job situation, people are moving from one area to another in search of better job opportunities even in the current market. While the recovery is gradual, real estate agents in my area are already beginning to see a rise in business, which gives a promising outlook for the future.
The real estate market is currently a buyer's market. The market will continue to fall even as the economy starts to grow. The reason for this is people will continue to lose their homes and they will not be able to afford new homes at the time. The real estate market is still very expensive for many people.
The bubble has burst and the decline that has happened is already done. I haven't seen the value of my house decline significantly in value in well over a year, and now that the economy is slowly climbing out of the hole it fell into and people are getting out of foreclosure trouble, there is no reason to believe that the market for houses will continue to decline. As for its improving soon, that is hard to say but I do believe it is likely to see some improvement that will match the slowly improving economy.
The real estate market crashed because of the bad choices made by lending agencies. The fact that people couldn't afford their homes and lost them can be traced directly back to those choices. Now that the country has gotten an education of sorts about lending money to people who can't afford it, things will begin to get better. We have to clamp down on greed and become more realistic about home buying across the board. From banks to home buyers, things are getting back to normal but it will take a while.
As per my opinion Residential real Estate has never hit bottom, it's always up and its still going up. As per my knowledge on days by days Real Estate Prices are increasing in every places. So how we can say that its going down for now. I thinks real estate Especially Residential Real Estate Can Never go down.
The market has some way to go. The worst is over in terms of economic costs but it will be years, possibly a decade before enough people get good paying jobs, if that's even possible, and are positioned to purchase a home. The middle class is becoming a class of renters. Banks have lots of money in hand and are happy to invest in markets and not expose themselves to 30 year mortgages that may explode again due to Wall Street's mismanagement of hedge funds and just outright telling lies to the investor.
Best advice, get debt free, live in a very low profile style and save your money. Ignore those that talk about buying gold. They knew ahead about the collapse and planned the gold take off. The will know when the gold market will dip back down, way down, to a reasonable lever, self correcting is what it's called, and they'll be out long before you and I hear about it.
We can expect several more months, and possibly years, before the housing marketing starts to climb in prices. There are a large number of homes for sale that are foreclosed, and they are holding the prices down. Until that inventory is sold, home prices will stay flat or even decline.
The real estate market is based on desirability of a location and demand for inventory. While the market has hit a major low point, it is always possible for things to drop even lower. Crashes and booms are very regional and depend on local factors. A simple thing, such as an area becoming less desirable to live in, can cause prices for that area to drop even further.
Right now, it is pretty much next to impossible to qualify for a loan. Banks have done a complete 180 from where they were a few years ago, and really do not want to hand out any money whatsoever. So, until this gets moving again, and until the job market is in better condition, the housing prices will continue to drop. So, because of this, the residential real estate market has not hit rock bottom yet.
With the U.S. economic problems that started in 2008, the housing market took quite a hit. Too many people purchased houses that were way above what they could afford. The lending companies were greedy in that they talked people into variable rate mortgages, not understanding that this type of borrowing could not be sustained. Our economy still has not recovered, and many people are still delinquent on their mortgage payments. Unless there is a significant economic turnaround here, the residential real estate market is not poised to recover or to regain the ground it once had.
I watch financial news and there has been a rash of articles about how the banks are unfairly treating customers, forcing courts to issue injunctions all over the country. Until the banks and the government get this sorted out there will continue to be pain in the housing markets. Unfortunately there seems to be no relief in sight.