I have a larger house and i want to downsize and thinking of selling and buying a smaller house in a few years. Any of the older investers know what sparked the last few housing devaluations? I think early 90's and 80's a-- interest rates above 8-9% b-- high unemployment ( job security) c--- speculators leaving market d-- too high inventory ( too many listings) e-- baby boomers already have property not buying new stuff. f-- high bank repoes increasing. There must be early signs . I know the 90's correction was because of too many speculators and i think the 80's was high interest rates.. Everyone says real estate will never end. There must be a correction coming . It all comes down to supply and demand like every other market. What do you pros think?
The last correction in many markets was early 90s. It was caused by both high interest rates and a recession. I recall in South Florida, where I had a home at the time, prices pulled back about 10%. It will take a recession to cause major problems in most areas. But at present the economy is strong, employment is strong, and we have strong population growth. Trying to time the real estate market is even tougher than trying to time the stock market. So unless you really need to cash out, I wouldn't let your fears or projections dictate your actions. Unless you are in an area that really pushed too far too fast, then you may be running flat to slightly down for a while.
g----relaxed loan underwriting criterion. Blame the overoptimistic bankers for that one. That's what eventually brings the least financially suitable people into the fray. Which leads to: h-----all of the above.
Orlando fl . My house value went up in value 90% in 3 years . There has been a increase in houses put up for sale that has been on the market for a 3-4weeks . Before they were selling in a week. But spring will soon be here i think that will tell the strength of the market.
http://www.benengebreth.org/housingtracker/location/Florida/Orlando/ looks like its on a downward trend. inventory is increasing while prices are decreasing. unless its something you're comfortable staying in for the next 10 years i'd think about selling it. of course i am not an expert on the orlando market nor do i know your financial situation.