In order for real home prices to increase there must be real wage/salary growth....this is not going to happen in the USA for many years.
Get a look at who is reducing employment: dailyjobcuts dot com. Sure would hate to be in the medical field.
Money is tight. Traditional lending channels have dried up for everyone except those with platinum credit.
So, why am I smiling? Growth will get moving again. Jobs will be more plentiful. We know that corporations are sitting on a lot of money and more cash is sitting on the sidelines. The process might start as soon as we get past the current debt ceiling talks.
But there is more reason to be optimistic that housing has hit a bottom and a recovery will begin accelerating. Rising rent will pressure couples to consider a home purchase. And, as others have noted, residential home construction has not kept pace with historic demand.
Here in Boulder County, we're ahead of the curve. Time on the market has dropped to 30 days. Unemployment is down dramatically. A developer already has announced plans for 5,000 homes in a small community in the southeast part of the county. What is driving all of this optimism? Everything from a new facility for electric car motors here in Longmont to a coming research facility for ConocoPhillips in Louisville. And a few miles to the north, a community landed the NASA technology park that will accelerate new technology to the market possibly employing as many as 10,000 workers.
Some uncertainty persists. As many will note, there are still all those foreclosures to come.
One estimate puts foreclosures at 10 million before it's all said and done. That seems pessimistic to me. The links below put detail on what I summarized.
PML of Longmont, CO
There are many homes on the foreclosure list which has not hit the market as of this date July 2011.
We will not see a change until after the next election.
This is my opinion.