Predictions for the Real Estate market in the near future

I think the housing market will continue to drop until the foreclosure crisis is over, this will happen, when the Banks finally DO something to get out of the vicious cycle once and for all, just like in 1996. Right now, they are just being difficult in processing short sales and cutting losses for everybody hence properties are being foreclosed at a fast rate. At some point they need to take all their foreclosed properties, package them and sell them at $0.50 on the dollar, take the hit (which will likely be somehow transferred to our ever increasing deficit, inflation will increase, the dollar will loose value, this will make our products more competitive in the global market) then with the market at a healthy price level (probably 5 to 10% lower than what it is now), with no foreclosed properties casting a "ridiculous price" shadow on the rest of the market, the sky will be clear, the prices will stop dropping, the real estate market...slowly but surely will go back to being the great solid investment that it has always been. Remember, this is a 10 year cycle, with 5 year memories. All the "chicken littles" are coming out of the rocks and trying to convince us that the world is going to end. This happens in every down cycle In a few years, all these "crows" will go back to their caves, while the market flourishes again. Cycles have always been a part of real estate as a part of any market, and they will continue to be. Don't worry world!.... life is great and the sun WILL come out tomorrow!

Paper Economy - A US Real Estate Bubble Blog: Any Predictions?

Paper Economy - A US Real Estate Bubble Blog: Any Predictions?

I think the housing market will continue to drop until the foreclosure crisis is over, this will happen, when the Banks finally DO something to get out of the vicious cycle once and for all, just like in 1996.
Right now, they are just being difficult in processing short sales and cutting losses for everybody hence properties are being foreclosed at a fast rate.

At some point they need to take all their foreclosed properties, package them and sell them at $0.50 on the dollar, take the hit (which will likely be somehow transferred to our ever increasing deficit, inflation will increase, the dollar will loose value, this will make our products more competitive in the global market) then with the market at a healthy price level (probably 5 to 10% lower than what it is now), with no foreclosed properties casting a "ridiculous price" shadow on the rest of the market, the sky will be clear, the prices will stop dropping, the real estate market...slowly but surely will go back to being the great solid investment that it has always been.

Remember, this is a 10 year cycle, with 5 year memories.
All the "chicken littles" are coming out of the rocks and trying to convince us that the world is going to end.
This happens in every down cycle
In a few years, all these "crows" will go back to their caves, while the market flourishes again.
Cycles have always been a part of real estate as a part of any market, and they will continue to be.

Don't worry world!.... life is great and the sun WILL come out tomorrow!

I invite you to also post your opinions in my blog: http://houseinsandiego.blogspot.com

The time is now!

Many people think that this is not a good time to invest in Real Estate, because the market is "unstable", because it might drop "a little bit more".
For all this people, just think about the following:

• The market in San Diego county has dropped 15 to 20% in the last year and a half, this is a larger drop than the one we went through in the 1980's and 1990's, none of those was larger than 14%.
• Sellers are VERY motivated to sell, hence you can get an even bigger price cut.
• If you are waiting for someone to come on the nightly news and inform that prices will officially start moving up again, it is not going to happen.
• Interest rates are very attractive.
• Economy is strong.
• It is precisely this "instability" in the market, the one that creates uncertainty and fear in the mind of the sellers, and that is what works to the benefit of the buyer. The moment the market "stabilizes" it will also "stabilize" for the sellers. Then, at that point they will stop accepting low ball offers and the buyer's market will be officially OVER.

Consistency will make you wealthy

I am a Realtor in San Diego, California. I am also an investor, so far I own several rental properties in different states.
I am not rich, but I am definitely going to retire wealthy. And this will happen in 16 years to be exact.
Retiring wealthy, in my book, means that I will have enough income coming from my investments, to fulfill my projected expenses when I reach my retirement age. I probably will not stop working, because I also believe that if you truly retire, you rust and die younger. But what I want is make working an option, not a necessity.
Through this blog, I intend to help people follow this plan, even if you don't have any money. Even if you have not started saving and you are not young anymore. (I am already 49!)
If you are young, then you will appreciate the fact that if you follow my advice, not only will you retire wealthy, you will be filthy rich, and before you retire.
I welcome you to visit my website www.houseinsandiego.com.