When is this downhill market going to turn?

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Services for Real Estate Pros with Franchase

Some real estate experts say that this slowdown can last for more than 4 years. And the problem is that nobody knows when we hit the bottom of it. Somebody can claim that housing market has already reached its lowest point but the situation at FSBO market isn’t improving.

The only thing everyone agrees is that the housing market will not start recovering until people have an opportunity to obtain mortgages and loans more easily. At present most lenders don’t want to give credits and only potential borrowers with an excellent credit score are able to obtain it.

Every day we have more and more houses for sale on the market and fewer and fewer people can afford to buy those houses than ever before.

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Rainmaker
1,936,288
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

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.

Mar 27, 2010 05:20 AM #1
Rainer
59,176
Chris Wechner
CW Health Inc - Waterford, MI

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.

Mar 27, 2010 05:28 AM #2
Rainmaker
295,462
Sally English
The English Team - Atlanta, GA
Sally English Atlanta Real Estate Agent

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

http://englishteam.com/

 

Mar 27, 2010 05:35 AM #3
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