- Upcoming holiday season – real estate sales will become slower due to the holiday season starting before Thanksgiving. It is a matter of fact!
- Distressed properties continue to come onto the market in large numbers – foreclosures and short-sales are the #1 competitor for resales. If the banks are withholding foreclosures due to the “paperworkgate”, this will cause further price pressures in the first half of 2011.
- High unemployment
- Reluctant buyers
Note: with the upcoming election, "lame duck" session, January 19th - new congress is in session, withholding foreclosures, the above reasons and the lack of confidence in the economic recovery, I can understand how the experts are "sliding" their predictions further out.
The Case Shiller graph has been posted on my blog in the past. I am including two other graphs for your review.
As per KCM, Housing analysts have recently grown gloomier about the outlook for home prices as sales slump, with a survey released by MacroMarkets LLC finding that 79% of economists and analysts surveyed expecting home prices to decline this year, up from 40% in May.
OK, so?
It would seem that prices may go lower but in a broader context, the price expectation in 2013 is a dramatic increase in prices. Why?
Back to supply and demand. We will have a shortage in housing and it will hit us like a ton of bricks! Exactly when, I will leave it up to the experts for their prediction. After all these experts make their living by analyzing numbers, data, trends and publish % changes.
It is up to us to use the information to our advantage.
All I know is from history and what is happening now. There will be a shortage of housing and the pent-up demand will instantaneously change a buyer’s market to a seller’s market. Each of the graphs illustrates a dramatic increase in home prices during the last of ’12 and into ’13. Please read my previous posts on this subject.
Prepare now!
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