Johns

Is Wells Fargo's Latest Memo a Sign Real Estate is Bottoming?

prices will come down atleast 20-35% in all areas before we can even think of a bottom and it will likely take another 1-2 years(possibly late 2009) for that to happen. There are many stubborn sellers/builders still holding on to false hopes of making a big profit out of any innocent buyers that they can trap. But they will start panicking very soon when the ARMs reset in June 2008 when there will be a flood of homes in foreclosure process as the economy continues to weaken. I give you an example of a house in Atlanta area where it was listed for more than 600,000 and I looked at all the homes in the surrounding 2 miles area and there was not even one home worth more than 325,000. We should expect to see a big drop in housing prices in 2008. But buyers have to be very careful now as there is a potential for a big downside and also the Sellers and builders tend to inflate prices as they know that potential buyers are likely to bargain. I would wait atleast 1 year before I can even think of looking at any home to buy and even at that time do extensive research and bargain before I settle the deal. I am not a rich person and cannot afford to lose any equity on my home after I buy it in this artificially inflated bubble environment.