Do you see home prices declining over the next 4 years?

Asked by bea, 60025 Sat Aug 11, 2012

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14
Guy Gimenez, Agent, Manchaca, TX
Sun Aug 12, 2012
Bea,

I will play devils advocate here. In my opinion we will most certainly see another significant market correction which will likely make 2008 look like child's play. I will be very surprised if this doesn't happen prior to the end of this year depending on what happens in Europe and depending on how much more money the Fed pours into the economy to keep their Ponzi scheme going forward.

If my memory serves me correct, we saw appreciation and homes flying off the market in most areas of the country prior to 2007 and yet, here we are today wondering if another correction could occur. The answer is yes. One must only look at the stock market to realize things don't make sense. See, to me it's never made sense to only look at what is happening today and last week in our neighborhood, but instead it makes much more sense to look at what is happening throughout the neighborhood, state and even globally.

The credit markets have not loosened up and there are still, by most accounts, more than one million homes being held in bank's inventories nationwide with hundreds of thousands of more receiving a notice of default. What will happen to these homes? Will this many foreclosures not affect the market? Should we believe that releasing these homes in small batches will make the economy better. No, it won't. Look only back to the 80's to see how this mess should have been handled. Instead of taking years to slowly release the inventory, during the S&L crisis of the 80's, the banks released them all at once and oddly enough, the investors picked up properties for pennies on the dollar and the inventory disappeared, allowing the market to correct itself within a couple of years the downturn was a distant memory. Not so the case in our current situation where the clowns in charge ensured this would be a long and painful recession by prolonging the problem instead of eliminating it.

And what about the slumbering economy? Are things really getting better around us? No, they're not. Hiring remains in the toilet and my guess is this year will be one of the worst holiday seasons in recent history for sales. So what does all this have to do with homes...well, it's called consumer confidence and it ain't on the uptick despite what our political heroes are shoving down our throat and despite what the "agenda" based media is spewing out with the hope of convincing the masses who are still drinking the Kool Aid.

Yes, there are areas of the country that are seeing some signs, albeit manufactured signs, of recovery. This is to be expected in an election cycle. But to believe the worst is behind us is to believe in the tooth fairy and Santa Claus. Granted, for those of us who are prepared, there will be ample opportunity to capitalize on the next correction just as we've capitalized on this one.

Bottom line...do your own research....read valid and varied sources of information....don't believe what happens globally won't impact us here...and prepare for the next market correction which will surely come your way before you know it.
1 vote
Dan, Home Buyer, Alabama
Sun Aug 19, 2012
In real terms, home prices will collapse from here. Regarding asking this question of realty agents:

NAR’s insidious misrepresentations and lies are the most egregious I’ve ever observed.

They consistently lie to the public and those lies have been proven over and over again.

The reality?

-Housing Demand is at 15 year lows and falling

-Housing Inventory is at an all time record high and rising

-Housing prices are tanking in every statistical area of the country

-Realtors and other Housing Crime Syndicate operators are heading to jail in record numbers.

Time to wake up and get defensive.
0 votes
Sohail Salah…, Agent, Chicago, IL
Fri Aug 17, 2012
Yes and No, all depends on the area.

Sohail A. Salahuddin | Broker Associate | Visionary

Innovative Property Consultants Team | Sales and Leasing

Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

http://www.innovativepropertyconsultants.com

"Locally Known, Globally Recognized"
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Aug 13, 2012
Higher probability of stable to slightly higher prices over the next 3-4 yrs. Borrowing costs are very low and as long as this exists, it will allow many qualified buyers to gain access to the real estate market. Buyers need to wake up and realize they need more than a pulse to qualify for a loan. Those who have the ability to take advantage of these low prices and low rates will be sitting pretty 5-10 yrs from now.
0 votes
Joe Schiller, Agent, Chicago, IL
Mon Aug 13, 2012
no decline but taxes will increase and associations will increase and all this does not matter as soon as election is over cause things will get tough again
0 votes
Barbara Gran…, Agent, Anaheim, CA
Sun Aug 12, 2012
Hi Bea,

Same here in So Cal. We are seeing stability in the market with low inventory and modest appreciation.

Barbara Grandolfo
0 votes
Ivan Sagel, Agent, Chicago, IL
Sun Aug 12, 2012
Bea,

Here in Chicago we are seeing lower market times and increased market activity. Each neighborhood is different, some areas have already seen increases.

Best of luck,
Ivan Sagel
312-515-7823
0 votes
Matt Laricy, Agent, Chicago, IL
Sun Aug 12, 2012
Price will be up. Things that are priced right are flying off the market at a rapid rate. The days of steals and low ball offers are over.
0 votes
Philip Sencer, Agent, Chicago, IL
Sun Aug 12, 2012
The chicago market has changed 180 degrees in the past 12 months. The degree to which this has occured depends on the neighborhood/burb you are referring to. 60625 includes a few neighborhoods which seem to be acting somewhat differently, but prices have STOPPED going down just about everywhere and probably will heading up somewhat slowly. It also depends on what you have....condo/house/2 flat....and it's price range-1st time buyer range or high end etc.
0 votes
Gang activity and murder rates are absolutely exploding in Chicago. Armed gangs compete directly with the government to rob anyone for any reason.
Flag Sun Aug 19, 2012
Robert McGui…, Agent, Denver, CO
Sat Aug 11, 2012
Bea,

Here in Denver, we are experiencing significant appreciation in almost all areas and most price ranges. some areas are increasing by 7-10%. We are among the highest in the nation and at the top as far as the recovery. I looks like your area is moving in the same direction. 4 years from now should look a lot better in terms of appreciation accross the nation.


Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
http://theRobertMcGuire.com
0 votes
Sari Levy, Agent, Addison, IL
Sat Aug 11, 2012
Prices should be up maybe 4 - 5% over the next 4 years. Prices appear to have stopped declining as a result of extremely low inventory levels, coupled with rising demand. Sellers are so discouraged with low prices that they have given up on selling at current levels, which is what is keeping inventory low. In addition, employment is gradually improving.

I track a number of real estate indicators at http://ChicagoHousingStats.com where you can see long term trends for the Chicago housing market.
Web Reference:  http://LucidRealty.com
0 votes
Joel Raynes, Agent, Wilmette, IL
Sat Aug 11, 2012
No! I actually see prices slightly increasing. Over the next few years, prices should be up somewhere between 2% to 6%
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Aug 11, 2012
NO!
I see them increasing at about 5-6% in most areas;
Look for fair weather and desirable working areas.
0 votes
NAR’s insidious misrepresentations and lies are the most egregious I’ve ever observed.

They consistently lie to the public and those lies have been proven over and over again.

The reality?

-Housing Demand is at 15 year lows and falling

-Housing Inventory is at an all time record high and rising

-Housing prices are tanking in every statistical area of the country

-Realtors and other Housing Crime Syndicate operators are heading to jail in record numbers.
Flag Sun Aug 19, 2012
Wes Black, Agent, Louisville, KY
Sat Aug 11, 2012
This will of course, vary from city to city buy my bet is on slowly increasing prices of homes for next few years. Current inventory of houses is aging, and shrinking as more people come back into the market to buy.
0 votes
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