Quite a few people are getting ready to buy, hoping for bargains and future appreciation.
Where will home prices go?
I just read this blog post with many nice graphs, but lacking reality:
Unlike tulip bulbs (Tulip Bulb Mania), people NEED houses and also unlike tulip bulbs, houses are EXPENSIVE to produce.
It is of course possible that houses can be sold far below cost because there's a housing glut. But eventually (if they ever STOP building), demand should exceed supply.
Tornadoes, hurricanes, floods, fires ...
Are we going to see a significant population decrease?
Will construction workers build homes for $1/hr?
Will material costs go down?
Bloomberg on 3/31/09:
How do $12.8 trillions in corporate subsidies cause LOWER prices?
Adrian Salbuchi made some very interesting comments and comparisons to Argentina in his youTube videos:
Most of my clients want to buy houses.
Most have bad credit, with chronic delinquencies year after year. Most have no down payment. And some "think" they are pre-approved.
Of course they should buy IF they will be able to make the payments and they get a good deal. A good deal is NOT getting a lower price.
It is completely irrelevant what a house was listed for last year.
What counts is what homes are SELLING for NOW.
Location, location, location!!!
I wouldn't take a home in a deserted neighborhood if it was free. Nor would I take a home in a high crime neighborhood.
Buyers need to look at the value for THEM. Will they be happy there?
Salbuchi recommends taking the money out of banks and paper investments and buying just about "anything" with a real value (gold, real estate) because money will be worthless.
That could happen.
Nobody knows what WILL happen.
We're in uncharted waters. The US is now a fascist country. Nothing is what it appears to be.
Everything is manipulated to defy logic and reason.
Salbuchi made some very interesting comments about Obama.
Obama came out of nowhere and was chosen because he looks good, is young, has a great smile, appears sincere, has a nice family and is black.
Obama is a puppet, controlled by the people who caused the credit crisis.
He is the bank owned Federal Reserve's tool.
It's Obama's job to pacify and manipulate the masses.
We'll see how that works out.