It depends on what deeper housing woes means. More foreclosures and shortsales?....most likely, but looking at the cities of Anaheim, Garden Grove, Fountain Valley, and Huntington Beach, 40% of the inventory is in escrow right now. What this tells me is that finally prices are at a level that buyers are willing to purchase and they are obviously not too afraid that prices will fall even further. Theres no doubt that our economy is in jeapordy, but I think given the recent market activity, great things are to be expected in the real estate industry in 2009. Interest rates are low, there are plenty of people qualified to buy homes, the affordability index is now above 50% (according to CAR), prices have fallen 30-60% depending on the area, and inventory has been steadily shrinking.
I don't think there is much we can do to prevent the foreclosures and shortsales happening in our market. The sad truth is that there are plenty of homeowners that cannot qualify for a loan modification, and in my experience, are not interested in trying to keep their property. Also, it is quite apparent now how many people were fraudulently qualified for a home loan.
The best fix for our "housing woes" is for everyone to purchase a property. If you are a buyer sitting on the fence, there may not be a better time to purchase real estate than 2009.
Century 21 Beachside