What will happen when the market hits bottom?

Asked by The_Bayou, Newton, MA Wed Apr 23, 2008

What will happen in the first year or so after the market hits bottom? Will it start to rebound, or will it remain flat for a few years? Obviously just looking for opinions here.

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4
Todd M. Bitts, , Freeland, WA
Wed Apr 23, 2008
You know what I think? When the market hits bottom, it will start going right back up! Here in the Northwest we're actually seeing prices move upward, depending on the property, of course. Our unemployment rates are still relatively low so there's an influx of people and they will all need housing.
0 votes
Darlene Scott, Agent, New York, NY
Wed Apr 23, 2008
It will have no other choice but to go back up.
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Paul Yeager, , 28785
Wed Apr 23, 2008
Like almost everything in real estate, it's going to depend on the specific local market you are interested in. Areas like inner city Detroit (just for example) that were not doing well before the "sub-prime lending crisis" are not going to bounce back quickly, if at all. Areas that were doing well before the "crisis" are likely to recover more quickly.

My local market in Western North Carolina includes a lot of vacation home, second home, and investment buyers. As these buyers are often less affected by economic conditions overall, I expect we'll recover pretty quickly.

When planning for the recovery, keep in mind other factors that might be changing. I expect that the price of gasoline is going to be a significant factor. People are likely to want to live closer to work, or to public transportation. Don't bet on gas getting any cheaper - ever. While we may in the long run develop alternative sources of energy to fuel personal transportation, there is scant evidence that any of them are going to be any cheaper than gasoline.
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Cynthia Viejo, Agent, Charlottesville, VA
Wed Apr 23, 2008
Let me say that you never know what is the bottom until it is too late because the market is already going back up. So I guess the best answer is when you see the market shifting again and prices begin to go up again in your area then you know bottom of the market has happened.
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