When is this downhill market going to turn?

It's not down hill everywhere. Not everywhere is knee deep in foreclosures, repos, short sales. Maine is way way ahead of the curve, stays that way and folks have a pay as you go, save money, live below your means and plan for rainy days attitude. Every market is different. Last year was one of our best yet in 30 and if you went thru the 1980's with 16% interest...well now, that was a market that left scars, hurt and stung a little.

I live in the Detroit Area, and WE have 5 to 10 years, probably, before WE recover.

However, most of the nation should rebound sometime during the next year or two.  Credit is relaxing.  The feds were subsidizing banks for money missing from foreclosed properties.  Now, they're subsidizing losses from having to modify existing loans.  So many of the banks will be in very good shape, which will put them in much better position to begin lending.

We need to provide opportunities for businesses (mostly small...that might be the only place that we will be competitive soon) to provide jobs.  THEN the banks will feel better about loaning you and your neighbors money.  Credit is what dictates market price, because people are willing to spend more when they don't feel the cash coming directly from their pockets.  They pay, but many don't feel it for years.  This will drive up housing prices.

Us folk around here, however, do not see jobs coming our way.  We have way too many lost high-paying manufacturing jobs to replace.  Michigan will survive, but it will be a vastly different economic structure than we see today.

Do not be discouraged.  We do not know when the National economy will turn.  This is indeed a challenge.  But for those in the real estate business, we do know property transactions will increase even if the National economy remains sluggish.  Sadly, some folks will have to sell and there will be buyers who take advantage of the deals.  On the flip side, if the economy improves, there is a pent up demand that will need to be satisfied.  Either way, looks to me like buyers will come off the sidelines and get in the game,

Sally English

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