We are indeed a credit based Nation. ( I am not saying this is right it just how it is) They still don't know what to do with the bail out and now everyone wants a peace of it even the auto makers.
The economy has cycles government intervention can and has changed it and the government tends to act to long in one direction and than overreact to change ( putting the prime up 14 times in a row)
The housing market should have peaked around 2001 the fed by loosing up lending laws and Sub prime loans entered in. More buyers than sellers prices rise. this went on until late 2005 but because it was not build on sold lending practices or investing practices it came crashing down. Now buyers are very few and inventory is high ( prices go down) I have been in Real Estate 10 years and have never seen prices so low. It is very easy now to buy a home now rent it out and cash flow each month in may cases returns over 10% on your money Where else can you do that. Plus you can write it off. Depreciate it and Deffer the income.
Investor buying in 2005 Were looking for the equity to continue to go up while taking negative monthly cash flow this failed. Now you can buy low and cash flow and when the equity does goes up you are even in a better place but if it takes a while you still cash flow each month. Plus instead you can actually drive by and see your investment that's why they call it Real Property. You can touch it and see it.
Great time to buy Yes. How long willit last? Who knows but onething is for sure it will change. Wait to long and you misst the oppurtunity.
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