In the markets where the real estate boom has been strongest, such as real estate in California, Texas homes, and Oregon real estate, we wouldn't bet on the stratospheric prices remaining near their current levels. The statistics cited by the writer point out that there has been a sharp increase in foreclosure rates as well as an even larger decrease in home sales in recent months.
No matter what professionals say, prices cannot stand that kind of dual pressure for long and are bound to head south. The bigger the pressure applied, the sharper the price drop will be. It's just unrealistic to believe that double-digit increases in foreclosures combined with double-digit decreases in sales aren't going to have a significant impact on prices. Common sense means much more than predictions from people who get paid to be overly optimistic.
Keep in mind that real estate professionals have a vested interest in telling you that everything is going to be fine: they want the commission from selling you a house or selling yours.
In most areas there may be a gradual decline or small increases, but if your local market has been seeing huge equity gains recently then homes in your area may be due for some price shock therapy.
No matter what professionals say, prices cannot stand that kind of dual pressure for long and are bound to head south. The bigger the pressure applied, the sharper the price drop will be. It's just unrealistic to believe that double-digit increases in foreclosures combined with double-digit decreases in sales aren't going to have a significant impact on prices. Common sense means much more than predictions from people who get paid to be overly optimistic.
Keep in mind that real estate professionals have a vested interest in telling you that everything is going to be fine: they want the commission from selling you a house or selling yours.
In most areas there may be a gradual decline or small increases, but if your local market has been seeing huge equity gains recently then homes in your area may be due for some price shock therapy.
