If now is not the time to buy a home, then when will it be time? The last time I remember home prices falling this dramatically was around 1990 with the S&L debacle. If you bought a home then you've done well in terms of equity.
So, is it different this time? Is the slide in home prices almost over? Will home prices be higher in 10 years than they are now? Will interest rates increase over the next few years?
I don't have a crystal ball, so I'm not going to make any predictions. But, I do know that as a stock market investor for many years, bear markets are followed by bull markets which are followed by bear markets again. The cycle repeats itself over and over. Right now, all of us are experiencing a real estate bear market. What's next? When will the real estate bull return? Will the cycle repeat?
Look at the news! Could it get any worse? Headlines tell us that unemployment will increase, foreclosures next year will be higher than this year, a double dip recession is coming, and on and on and on.
Who wants to own real estate? Me, that's who! The last time I checked the world can only end once. And despite all the 2012 hype, that's not one of my predictions.
So what's a homebuyer to do? Buy, buy, buy before all these bargain basement prices go bye, bye. Will you be able to buy a house in 2010 and flip it for a profit? I don't know. But, I'm going to go out on a limb and say that 5 to 7 years from now you'll feel good about your decision to buy.
I sleep well at night knowing that my recommendation to buy a home today will work out real well over the next few years.
What do you think?
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