Yesterday’s housing news was dismal, but is it all bad? – According to Shiller the other half of Case:
“There’s a substantial risk of home prices falling another 15%, 20% or 25% more,” he said.
His reasoning is that the presence of Fannie and Freddie will be greatly reduced, and since they guarantee approximately 2/3 of the mortgages, what will be necessary is that private money will have to bridge the gap, and the cost of money is guaranteed to rise.
Buy now and forever enjoy your gain….
- Low Prices
- Low Interest Rates
- Lots of inventory
- Buyers’ market
|Have your cake and eat it too!|
Of course the biggest problems are unemployment, and credit is still tight. It used to be that 15% down was acceptable. Can we please go back to that? If a buyer is working, has good credit, is not going over the income to monthly payment ratio – can we please loosen up and allow people to own homes again before the S – – – hits the fan?
P.S. I first bought a home in NYC when it was less expensive to own than it was to rent. The rental market was insanely expensive, and history is repeating itself…the market will eventually even out – and you know what else I predict? It will go back up as well – up > down > up > down – we have seen it over and over again….well those of us who are old enough to remember.