How can the housing market recover??

I keep hearing people saying "we are near" or "approaching" a bottom but here is my question..... The crazy rise in housing prices were fueled by insanely low interest rates, high risk buyers, flippers, etc. So we take out the fuel that drove the housing boom how can anyone argue that prices will go up (or even stabilize) before falling significantly more? With tougher lending standards I wonder how first time buyers can buy anything in the higher priced markets.....The metro NY area seems to be in better shape than FL or CA but with the investment banks tanking it should be interesting to see now that bonuses are drying up.

So does anyone believe we are really near the bottom?

 

There is no doubt that housing prices will/should rise without the conditions that led to the recent price increases. The difference will be the rate of the price increases. We probably won't see the kind of fast growth that occurred between 2003 and last August but there is not doubt some slower, "natural" rate of housing price growth that is commensurate with inflation, income growth, and several other factors.

As for whether we've seen the bottom or not, people have been guessing at that since December and they will no doubt continue to guess at it. Its kind of the million dollar question, but with oil prices falling so much in the last two weeks, and a relatively good earnings season, I think that we're probably getting close.

Hope some of that helps.

 

Earnings, lower gas prices..... ok I guess that will help the overall economy but how about rising interest rates, tougher lending standards, taking flippers out of the market.... I myself moved 3 times in 5 years between 99 and 04 but I am staying put like a lot of others. I would have to think we still have a way to fall.

 

my guess is that there won't be a recovery before November or maybe January

 

Post in the right forum and we will tell you!

 

Housing will continue to tank. How long is anybodies guess. The system is broke so it could be a long while.