I sold all my RE holdings a few years ago in 2007 when Stock market topped on the monthly charts. And I will not buy again till interest rates are very high and many are being foreclosed on. But you have to be buying them outright and not on credit, otherwise wait till interest rates starts moving down after it peaks. But I see with interest rates being so low, upside appreciation of properties will only go down. If you going to just buy it and keep it 30 years, no problem, but seldom anyone does this any more.
Check out Las Vegas houses, way way down, and being the economy is down in gambling, they will go down even more.
We are in strange place with RE. When inflation hits the Fed won't be able to hold rates down, rising rates will kill the RE market but then RE is good to have in inflationary times! Cash will be king but what hard asset actually fares best in inflationary times? I read that stocks do ok at the outset of hyperinflationary times but end up dismally behind inflation as the actual economy gets destroyed by the inflation... Probably there are some ETF's but RE should be easy to rent in times when working people cannot buy it but have to have a place to live...
it takes only 4-5 months to foreclose in Arizona, in other states it may take two years or longer, that is why the market bottomed in phoenix, supply is down 43 percent year over year and prices are up 13-30% from the bottom in the hardest hit suburbs, i sure hope you are right that 'another wave' of 2010-bought homes are going into foreclosure so i can pay cash for more homes, with 5-6 all cash offers per house doesn't seem likely.
"More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame."