Housing Slump Almost Over
Okay, maybe not almost, but the Wall Street Journal writes that at least the “end is in sight.” Home prices, said economists at the National Association of Home Builders’ latest conference, could hit bottom by the middle of next year. “Many of the economists seemed optimistic that the government’s bailout plan, which includes buying toxic…
Okay, maybe not almost, but the Wall Street Journal writes that at least the “end is in sight.” Home prices, said economists at the National Association of Home Builders’ latest conference, could hit bottom by the middle of next year. “Many of the economists seemed optimistic that the government’s bailout plan, which includes buying toxic mortgage debt, will lead to housing’s recovery. More affordable prices, pent-up demand, incentives on new homes, fewer housing starts and expected declines in interest rates for fixed-rate mortgages also should help ease the crisis.” The bounce back might be independent of a stock market recovery, since unemployment is up, housing prices could fall as much as 10 percent more, and 12 million people owe more on their homes than the homes are worth. And, for a while, supply will outweigh demand. What lessons should we learn from this mess? Among other things, “Just because someone is offering to loan you money doesn’t mean you should take it.”
End Is in Sight for Housing Slump [WSJ]
Photo by trance.field.
The more quick-witted of the brokers out there are writing these things down for future use.
I wonder if Kevin Carberry has this listing too?
Sundrenched.
“drooping with period detail”
Lethacal we agree.
Or Dave, to quote a line from the ad for our house (in about the same shape):
“Renovation started, you finish!”
The New York market is not the national market. The national market has undergone a very healthy purge. The purge in New York is just beginning. New York will continue to decline while the national market is on its way back up.
Everyone has a crystal ball. Some work most don’T. I must admit I think prices will get more realistic with rents. But as I have written the best properties in the best neighborhoods will go down less than the less desirable. Percentage terms that is .
And for the topic that really interests us, NYC, the NYC market is moving on its own track. Last to fall, last to recover.
As the WSJ article states:
Remember that markets are cyclical; the bigger the binge, the worse the hangover. We’ll have to suffer this one for months or even years to come. But if we learn not to over-indulge, we’ll all wind up healthier in the long run.
Broker listing:
19th Century Charmer; a clean palette for your renovation ideas. Vacant estate of historic significance retaining all of its original architectural detail and charm. Bring your contractor and designer. Discreet showings by appointment.