“Historic Turning Point for Real Estate” - A group of economists and real estate experts were “polled” and they tend to agree that home prices will reach bottom this year.
Seems like I heard that last year. Now the are predicting home prices to start increasing. I don’t recall seeing anything in their remarks about why people are not buying. I don’t recall seeing anything about unemployment hitting and remaining at the highest level in years. I have not heard anything about the plan to increase the down payment for buyers to 20%. How do these factors affect the price of homes? I think they will affect it in a big way.
Demand for a product is what drives the price. Doesn’t matter if it is homes or widgets. At this time, I don’t see a huge demand. Partly because of unemployment and partly because home prices became outrageous.
We had a lot of economists and real estate experts in the early part of this decade. A lot of them thought the market would continue the strong sales we were experiencing. The were wrong then and I think they are wrong now.
Seems like I heard that last year. Now the are predicting home prices to start increasing. I don’t recall seeing anything in their remarks about why people are not buying. I don’t recall seeing anything about unemployment hitting and remaining at the highest level in years. I have not heard anything about the plan to increase the down payment for buyers to 20%. How do these factors affect the price of homes? I think they will affect it in a big way.
Demand for a product is what drives the price. Doesn’t matter if it is homes or widgets. At this time, I don’t see a huge demand. Partly because of unemployment and partly because home prices became outrageous.
We had a lot of economists and real estate experts in the early part of this decade. A lot of them thought the market would continue the strong sales we were experiencing. The were wrong then and I think they are wrong now.
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