Quote:
Originally Posted by yys
I don't see them being wrong with this call. One of the main reasons there was a bubble in R.E. was due to houses being built and sold, mortgages being approved, too people who had no business owning a home in the first place. With all these owners and buyers knocked out of the market for the foreseeable future prices have no where to go but down; certain markets excluded. Or in short; too much supply and not enough demand.
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Consider too that:
1) Those who get foreclosed on will be knocked out of the housing market pretty much forever, regardless of how much they might earn in the future, due to their credit scores having been effectively nuked.
2) With the inevitable heavy duty inflation heading this way interest rates will go through the ceiling resulting in even more foreclosures. Meanwhile, new mortgages will become unaffordable for an ever increasing percentage of the population despite the drop in housing prices.
3) Then, of course, there's that upcoming recession we keep hearing about. Add job losses and higher taxes to the mix and the housing market gets kicked in the teeth yet again.
I sure as hell hope that I'm wrong... but the future looks pretty damn grim
