Home prices continue to fall so hard that it's tempting to believe they've either hit bottom or will do so soon. But some economists think home prices will remain depressed for a decade or more.
Fortune cites an analyst who says inflation-adjusted house prices could continue to plummet, thanks to a gloomy economic outlook, falling salaries and government spending cuts. Home buying is all about optimism — buyers need to be confident that they'll remain gainfully employed and believe they'll be able to make 30 years of regular payments, and since there are fewer buyers who are in such a position, demand for houses remains low.
Since the Depression-era housing market took 19 years to reach its previous peak, the economist reasons, it could take until 2025 for the current market to recover.
When do you think home prices will start rising again? And what are you doing to brace yourself from the poor market, or take advantage of it?
How housing could rebound — in 2025 [Fortune]
7 comments:
This is the market where the little guy, if he was fortunate to make it through the turmoil, can finally come up. Don't fall for the "buy gold at record highs, sell your home now before it's too late" crud from the rich guys who are doing the exact opposite.
We haven't seen anything close to the bottom.
With the country making a transition to socialism , the housing market will completely dwindle. The value of property will be close to nothing because , in the finale , the government will own it.
It happens when countries become social government.
The well off or poor as church mice.
9:27, by most accounts, it was free-market economics and little gov. oversight that leveraged this into a global collapse. Excuse me for not understanding your reasoning.
Banks handing out at risk loans to make numbers and bonuses then wanted a bailout didn't help.
It will be a long, long time before those going threw foreclosure will be able to secure a loan for their next home, even at 30% of it's original price.
With an economy like this it will also be questionable for most to even think about an upgrade on a new hom, again, even at 30% of it's original cost.
Right now if you are surviving, it's the right place to be at this time.
10:22
If you think the government had nothing to do with Fannie May and Freddy Mac , then get your head screwed back on.
I suppose the government had nothing to do with electing Obama!
That was the government ,idiot.
10:22 it was government regulation that caused all of this...AKA Socialism!
tisk tisk. Please pay attention. Just because something SOUNDS like it could be true, and it's screamed by all your favorite conservative commentators, doesn't make it true.
1/25 (thats 4%) of subprime loans were issued due to fed housing laws during the bubble
Loan securities ramped the housing bubble into a global recession. Fannie and Freddie were only holding 24% of these securities, the rest again was private lenders
The main entities (investment banks and non-bank lenders) who overwrote subprime loans weren't even subject to gov. lending programs including the program conservatives love to blame, the
30+ year old community reinvestment act.
Not to mention, the housing bubble occurred during a republican congress and administration that was coooing over the fact that they were residing over record rates of homeownership. Funny how now "it's socialism's fault".
Post a Comment