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6 months down the line, prices will go down definitely. However,
changes in the RE market seem to take their sweet time. The bubbles
that are currently happening didn't come overnight, and they won't pop
overnight either.
I keep looking at zillow to see the changes in certain markets and it's
ridiculous. I saw the values starting to come down, only to go back up
for a couple of months. Now it looks like they're coming back down
again.
Any way you put it, it's unsustainable. Your average American can't
put up with a $500,000 mortgage. And this will be all too real once
more and more loans start readjusting over the next couple of years.
I do not think you will see these bubbles burst until about a year or
two from now, when the majority of those Interest Only and special ARM
loan suckers get a taste of reality.
F.B.
Mr P wrote:
> The "elephant" is actually the huge real estate bubble that is popping
> around the US. This appears to me to be the biggest news in real
> estate, especially for investors, yet I read little about bubble trouble
> on this forum. I find it hard to believe that anyone can honestly
> brush off the fact that problems abound: mortgage delnquencies,
> foreclosures, rising inventories, higher interest rates, slow sales,
> flat (or falling) home prices, etc.
>
> It's almost lke Rome is burning, and investors are standling around
> playing their fiddles, pretending that everything's okay.
>
> There are those who claim that "we're just returning to a more normal
> real estate market", in terms of supply, demand, and price
> appreciation. To me, it appears that the real estate market is in bad
> shape and getting worse by the day. With "nothing down" and ARMs adding
> to the problems, we have indeed built a very fragile house of cards.
>
> What do you think? What will the market be like in 6 months, or a year?
>
> Peppa
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Re: Why no posts about the "elephant" in the room?
