This was a crazy post on the "Real Homes Of Genius" Blog.
This blog has been an incredible documentary of the crazy U.S. real estate market, and the crash. It is painful to watch as homes in California are now hitting the five figures in some zip codes.
So the question sometimes comes up, "Is now the time to buy?" My answer is no, because there are still four million delinquent mortgages that are about to go INTO foreclosure (only 2 million have hit so far) and prices are going to keep going down.
If it was possible to sell, it would be a good time right about now, but it would probably not be possible without a huge loss.
So when will the market hit bottom? Bottoms of real estate markets stay down for a while - not like tops in asset bubbles when you can almost call the day that it topped. It flattens for a little while, then sellers don't wake up to the reality, and then panic goes out, and then markets collapse.
In 2005, a home in Palmdale probably went for mid 300's, now it is in five figures. 81% drop in values, and I don't think that's near the bottom.
I don't think it is ever good to try to time a top or bottom, because nobody really knows the day, and if you're stuck as it's falling, you can't get out.
2 comments:
read the article...The palmdale home with a piece of fence made me Laugh LOL..
I've spent time in Palmdale... you couldn't pay me SIX figures to live there.
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