Will the real estate market recover in 2008, or keep falling? Why?

• This question is based on a false assumption.

  There is no national real estate market. There are only thousands of small local markets. I drove through a small college town in Texas yesterday that has a large number of apartments under construction everywhere because of a shortage of housing A month ago I was on the island of Maui and saw condos and houses under construction in several places on the island. I have heard of lots of vacant houses standing with no buyers in California, Florida and other places.

  I think in some of those places where there are new homes sitting vacant and a record number of foreclosures it may be 2009 before the demand catches up with the existing supply.

  In my area of North Texas it seems to be fairly balanced. Maybe a weak market in new homes, maybe a weak market in condos and in smaller homes, but a pretty balanced market in the middle range of prices.

• That really depends on the local markets you are in. Not all real estate markets are the same, in fact in my area the sales have not dropped at all. Now if you are looking to get a first time home buyers loan or other special financing loans the lenders are tightening their guidelines and it will be harder to get a loan I would guess for the next 6 months. Every one is running scared right now. Now if you have good credit and some money to put down, I don’t see any problem.

• I think you should re-focus this news special on the question: Which markets have not fallen. Or Which markets are recovering.

  There are no news reports on people buying homes, builders constructing new apartment buildings, or an owner selling his home by himself within 30 days.

  It has all been one-sided coverage.

  I know horror stories sell. But you need to look on the brighter side of things too. People do love a happy ending.

• I have a Real Estate License in Illinois, and although our market is not as disrupted as maybe the south or west coasts, one factor that can predict the longevity of this correction is wages. Inflation on items such as gas and oil, have effected the American family in a way they had not anticipated. Sure there is talk of being Green now, but where were these readily made available products 6 years ago, when people had the money to spend? I believe if congress can negotiate a long term, of five years or more, suspended rate hike, people can begin a new budget and planning for their future. This could remedy the market in the spring of 2010, if big business can not make a needed sacrifice, I believe this will be a lingering market problem for the next decade.

• Yes, the real estate market will recover gradually. Let me explain it why, USdollar is the weakest ever against Euro, and yen. This is a bad news over all. A lot of European investors are pouring money into real estate market. That’s not a good news, when one day the market ups again, they can plunge the market once again with selling high and exporting the dollar out.
  Fortunately, the US gov is well aware of this. That’s why they are doing everything to help financially distressed homeowners keep their homes with lower interest rates and other kick backs….on Dec 12th the discount rate will be lowered once again by feds to keep the market in motion, and that will boost up the consumers confidence.

  The number of REOs will be available in the market in large number in late 2008. That surplus will not hurt the market, actually most of those will be snatched by large investors for long term growth..

  There are a lot of people with money just waiting and weighing their options for the best deals in real estate.

  so if you are in the market to invest…find the best deal and make a move.

  regards,

  Jordan Mossa
  Realtor,
  prudential Ca Realty
  RSF, CA

This entry was posted on Wednesday, January 16th, 2008 at 6:09 am and is filed under Business And Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.