Good News for Real Estate

By
Real Estate Agent with RE/MAX Impact

There has been $400,000,000,000 (billion) in real estate foreclosed or sold short (loan not paid in full) since the market turned down.  Another wave of foreclosures will be hitting early next year.  It is estimated there are $300+ billion in mortgage loans still in trouble.  

SO WHAT?

That's actually good news.  We are more than half way through this melt down!  The real estate market has stabilized and some areas are experiencing appreciation.  Yet, there is still opportunity to buy a home at the discounted price...and 5% interest!

FORECAST:

Real estate prices will continue to increase from the low reached last winter.
Affordability will decrease as interest rates start to rebound to normal levels (7-8%).
It will be extremely important to buy with an eye on reselling.   

Comments (2)

James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

You missed one major caveat to your forecast. This is all subject to how the government wants to still dictate the market.

Oct 23, 2009 04:07 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Interesting...perhaps fear of impending hyperinflation is also fueling a return to hard asset investment, as a way to protect capital?

Oct 23, 2009 04:10 AM

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