In the hot markets like southern california, all time record breaking foreclosure rates, coupled with huge record breaking inventory = huge supply of rentals as desperate investors try to hang on. If youre willing to shop around, you can get a nicer place for less $$$ these days. Ive seen many of my friends upgrade for lower rent. With rising inventories and a shrinking population, prices are coming down all around. People are fleeing the state. Lending standards have tightened = buyers POOF! What moron is going to buy anytime soon?
yes. lets remember that certain markets haven't even softened at all iow, we talk about "the real estate market" when in fact there are many seattle real estate JUST hit an all time high. thus, it CAN'T be a bottom since it was lower 6 months ago, lower 1 year ago, lower 2 years ago, etc.
Real estate prices have not come down that much maybe 4-5 % reduction after all these stories about real estate crash and real estate bubble bursting and so on for the last 2 years. Some areas like Seattle and others parts of country have gone up! Real estate prices are always STICKY DOWNWARDS! People just postpone selling when they don't get enough, they stay put, enjoying comforts of home ownership etc. There are always those who HAVE to sell, and those numbers and desperation grows. But the buyers are just sitting on the fence, spooked as ever and now with lenders tightening credit, they will have to keep renting jostling with other losers in the same boat.
Just look at the real estate prices over 50 years. Real Estate in America has been going up ever since. The house they built in 50s and 60 s were sold for nothing to what they fetch today. There have been corrections and down cycles, but it comes back up with so much vigor and strength that it amazes me. I am just surprised at the resilience.
Where I am, prices have plummeted already. What was selling for $600k at the peak is now sitting unsold for $430k. I saw a small home which sold for $400k near the peak be auctioned for $127k a few days ago. RE markets are local. Anybody talking 4-5% obviously lives in another RE universe than the one I live in. vacation
Whoever wrote this must have a home they are desperate to sell. I my area affluent Boston Metro house prices have come down somewhat but nothing much is moving. When I moved to the area a few years ago there were no houses under $600K in my town. Today there are about 30 between $400 and $500K. One just listed at $399, a price not seen in this town for a SF since 2002. As far as rentals go, again threre were about a handful of SF homes to choose from when I arrived. Now there are 25 and most have been sitting vacant for 3 months at least (2 $3M homes that are renting for $6500 and 10K a month). Condo and loft rentals downtown are also down and the supply is increasing according to a freinds who tracks these things. He says that we are at least 1-2 years away from the bottom in the condo prices in boston based on the supply that will be coming online. Bottom line is that at least in the Boston area in the middle and upper income communities you are still better off renting than buying at current prices and as rates go up that only makes renting even moe attractive.