Johns

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    • Fri Feb 29th 13:31 PM | Rating: 0 0
      Commented on:
      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.
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    • Wed Feb 27th 22:36 PM | Rating: 0 0
      Commented on:
      Latest Case-Schiller Report Shows the Sky is Falling
      The prices have just started to come down and there is a long and painful road ahead. Even though the demand for housing slowed down in 2006 and 2007 the actual prices have only started coming down in late 2007 as the sellers were unwilling to lower the prices earlier. The housing market is way overpriced due to years of speculative buying and inflation. The current price environment is hardly affordable to most of the population and the buyers are unlikely to enter the market until they are absolutely sure that the prices are more affordable and the prices have bottomed out. The existing credit crunch and rising mortgage rates only make matters worse. I expect that the housing market will go through a painful and rapid correction process in 2008 where prices continue to trend considerably lower and likely to bottom out in 2009. I also expect that we might see a brief and slight upside interest in home buying this spring. However, I do not believe that this will continue into the summer as housing corrections typically last many years.
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