Wait for the other shoe to drop
The slide in the US real estate housing market will continue. there is no reason for it to turn around.
Economies and everything go in cycles.
Indicators are that the US housing will continue to slow.
Prices are deflating quickly - they rose quickly, remember. this doesn't mean that there are no buyers out there - just less. In a booming real estate market there are always a gaggle of speculators - the flippers. With no incentives for them now - unless you can short sell a house - the flippers are gone.
Foreclosures
Real estate as with many cyclical things tend to move in 6-7 year cycles. real estate is on a downward cycle. If you are buying to make a capital gain, I'd wait. If you are buying to live in it and don't mind watching your equity possibly deteriorate over the next few years, I'd wait. That being said, it is impossible to time the market. There will always be a demand in the market. After this period of price deflation subsides, the housing markets will stabilize. Though, expect prices to fall close to where they were prior to their dramatic rise. You need to "net out" the speculation and sub-prime price run-ups. As well, as always, be careful of the housing market you enter. Do your homework and don't rush in to buy.
Sunday, 30 December 2007
10 Commandments of Personal Finance
- Have a plan
- Do not compare yourself and your situation to others
- Set realistic and actionable goals
- Spend more time on your personal finances than you do on choosing a DVD to rent
- Have self-discipline and self-control
- Be accountable to yourself and to others
- Change your habits
- Want less
- Remember to remember the 10 commandments
- Think differently about your personal finances
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