Quote:
Originally Posted by Brujah
The market's pretty dismal still, people thought they hit bottom several months ago or more and were picking up amazing bargains. Wiping out a lot of value in everyone's portfolio. When do you think it'll start picking up?
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There was a boom in pending orders in January. Up more than 15% in states. If it translates into that large of an increase in sales in February and March we could see the bottom in some Southern and Western states before June with a bottom probably coming later in the Northeast and Midwest. The CEO of Wells Fargo - who have 1/8 of all mortgages in the US - said recently that he sees evidence that a bottom is forming. Not that we are "at bottom" but that "a bottom is forming". One thing he pointed out is that they are now getting multiple orders per house. Prices in the closest market to me; orlando, were actually higher in December than November - though this has happened occasionally during the crisis. Bill Gross said yesterday that he thinks rates will still go down to 4.5%. That is a huge decrease in the mortgage payment one gets and changes the calculus of home buying substantially.