Will Real Estate Prices Rebound?
Well, of course they will. Real estate has always been viewed as a good long-term investment. Nothing has occurred that changes that basic assumption. The short-term situation is a bit rocky, but it is only because we are going through a correction after watching the real estate bubble expand and expand for six years. Predictably, the air is coming out of the bubble, but at least it did not burst.
The more relevant question for people in the real estate market is not whether prices will rebound, but when? Ah, here we enter the realm of the mystic. The Harry Potter of real estate if you will.
The bold faith truth is nobody has a clue when they will rebound. On the positive side, we are starting to see things even out a bit across much of the country. On the negative side, financing for real estate purchase is tightening up as lender begin to realize they probably should not be giving money out like candy on Halloween. In the case of subprime lenders, the game is up for many of them and bankruptcy court looms.
At its financial heart, the real estate market is just a product market. Many people fail to take this into account when sizing up real estate opportunities. A home is a place you live in and raise a family. When it comes time to buy or sell, however, it is really no different than buying or selling a car. Yes, you had some good times with it, but now it something to be moved.
If you can wrap you mind around the idea a home is a product, you have a better chance of predicting when prices will rebound. Why? Well, it all comes down to inventory. When there is more inventory than demand, prices drop. When demand out paces inventory, prices go up.
At the moment, there is an absolute ton of inventory on the market and only modest demand. During the booming real estate market, developers where building homes as fast as they could. As the market cooled off, developers kept building like there was no problem. This has resulted in a glut of properties in most cities and high population areas. Developers are now offering very attractive deals to move the homes, but the market will not rebound till most of these are gone.
It is important to understand that inventory is important, but the number of houses sold is less so. If you see reports that the number of homes being sold is picking up, it is good news. That being said, it may not be great news. Such reports can be misleading because they do not take into account the reason a home is sold. If more homes are being moved because sellers are cutting prices, it does not mean that prices are on the rise again.
Will home prices rise again? Of course. You just need to be patient and watch the inventory.
Related Tags: prices, price, market, real estate, home, house, houses, homes, inventory, appreciation, rebound
Get a free 1 month online ad with pictures when you list your home FSBO at FSBOAmerica.org
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t
