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.