Lets Face it. Prices are too high and even with all time low rates the payments and prices are just too high for the average consumer.
Sellers wont come down on their price and buyers arent willing to accept higher counter offers.
Is the Real Estate Market pretty much bottomed out without any solution in sight?
Please enlighten us.
It's the way of the West, pardner, boom and bust. The cyclic economy, in aggregate as well as in sectors (like real estate) has always been with us and will go on forever. Usually each successive bust is not quite as bad as the previous one, so things like real estate do actually appreciate over the years. It's sort of a "ratcheting effect".
There will be another boom. The only question is when and how high. Real estate is cyclical.
Your question — is the real estate market bottomed out?
No, this is just the beginning. You can expect the highest number of foreclosures to occur during the fourth quarter of 2008.
You asked if there is any solution in sight. no, there isn't. The major banks like Merrill Lynch, Bank of America, and Goldman Sachs will continue to write-off debts. This will cause the foreigners to stop lending, and as a result our interest rates will increase. it probably won't be as easy to borrow money as it is right now.
Everything goes in cycles. what it is today, is out tomorrow, and so on. it will happen again with the real estate boom, but probably not for years to come.
Real Estate moves in 17 year cycles.
80% of the gain, comes in 20% of the move.
From 1988-2002 14 years prices barely moved.
From 2002-2005 (3 years prices in Arizona doubled)
The top was in 2005
2005+ 14 years of prices basically doing nothing but going sideways takes you to 2019.
Look to start buying in 2019 or 2020 for another explosion in price starting in the year 2022.
Hope this helps.
I wonder how many times just in the history of the United States has that been asked? And yet, Real Estate is worth more now than it was 20 years ago, which was worth more than it was 40 years ago, which is worth more than it was 60 years ago, etc etc etc.
Isn't even CLOSE to bottoming out yet. it WILL go up again, but not until after 2010. That's what my crystal ball says.