Don’t Buy Real Estate in March 2010, buy 2012 and after
A Second wave of Adjustable loans will push Real Estate lower the middle of 2010 through the end of 2011.
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California has a very high mortgage to rent ratio so it is expected to still come done in price in 2010 and 2011.
No doubt some properties are so low in price that they are unreliatic and these properties should be bought. I personally am still waiting till 2012 because seriously delinquent properties are still rising in number in 2010.
This analysis makes sense but it does not include the economic recovery aspect. As far as home prices remaining stagnant seems credible, but it will never fall off the cliff like it did 07/08. There are good bargains to be had at the moment in FL,NV,AZ, and CA. Commercial home price may fall throughout 2010 summer, but will be offseted by the economic recovery. There are many who lost their homes as they lost jobs, those people are going to need homes to live in, so they will buy’em back
They don’t show you this info on Fox News, CNN or MSNBC. Why because they are the cause of this collapse as well.
Nice info…thanks for sharing…you don’t see this stuff on MSNBC, CNN or FOX News. WHY
Hitting bottom in 2010 isn;t the only thing that’s going to happen. You’re going to see riots in the streets, mass poverty, marches and possibly even armed rebellion against the state since the state backs up all the banks and large corporations that force us to become slaves to their money system only to starty scandals and leave everyone of us for dead. People are not just gona be like “oh, the dollar is down and buys 50% less and then move on about their life. There’s gonna be reprisal.
Remember what happened with the Sub-prime fallout. The dollar shot up tremendously. Why would the second wave be any different? Unless of course you believe that the world will be decoupled from the US economy at that point.
Yes, interests rates are going to go up. And do you know what that means? Prices will drop even further! Save your cash for a big downpayment, who cares what rates are if you get a low price.
I think you need to define what you mean by Capitalism. I understand it as a system where Capital is privately held. The means of production (labor) are controlled by the Capitalists in the ‘marketplace.’ So I’m guessing no one on this youtube page is a Capitalist, but more likely a member of the ‘laborforce.’ To be a Capitalist means you don’t work but rather you live off your Capital in the form of dividends and Capital gains. Americans often confuse Capitalism with Free Enterprise.
this is wrong – real estate is one of the very best inflation plays – much better than gold as many think.
You are misusing the word “own”. Most americans DO NOT OWN their homes, banks do. America is a nation of renters and mortgage payers-so called “home owners”. Eastern europeans however OWN their homes FREE AND CLEAR. No renting or paying a mortgage, being a slave to the banks! USA IS BROKE AND BANKRUPT.!
“The trick was to buy in 1976 when foreclosures dried up, then real estate quadrupled nationwide in only 5 years”
Everything at least quadrupled. Food, energy, precious metals. That wasn’t real estate becoming more valuable, it was the dollar falling like a brick.
.”Ten years from now we will see that 2012 through 2016 was a great time to buy.”
Will we? I think precious metals will beat real estate by man, many times.
This country is in much worse shape than it was in the 70’s. We still had industry back then and we didn’t have anywhere near the debt levels.
Things are going to get much worse and I wouldn’t invest in real estate for probably another decade, unless some miracle happens.
The worst of the recession is in front of us. You are just witnessing an artificial recovery due to government intervention. A lot of bad things will be happening. Buy precious metals and stock up on supplies!
In 1966, 69% of Americans owned homes and the Real Estate depression started in 1966 and lasted 10 years til 1976. In 2006, 69% of Americans owned homes. In 2010 7.5 million first loans are in default so it will take many years to clear up. In the Aerospace recession we had less foreclosures and the Real Estate was depressed in California for 8 years from 1990 to 1998. Plus in 2010 and 2011 1.6 trillion in firsts are going to adjust higher (alt-a and option adjustable rate programs).
@mpoho2000 Inflation like that will not increase real estate values. It will in fact crash values. Look at countries where hyper-inflation has hit in the past. With runaway inflation people will be unemployed, making less money and spending what they have on food and utilities. Leaving very little money for buying homes. Because the dollar loses it’s value doesn’t mean everyone gets a raise.
As long as the government is stimulating housing, it will continue to be a very bad time to buy. I don’t see this going on for many years; at least until king Obamas term ends.
Will there be 2013?
I thought the world going to end at the end of 2012?
constitution tread upon,congress decieved, federal reserve counterfitting at will,total chaos …and theyre supposed to be the smart ones
in vegas they are tearing down new unfinished homes to lower surplus,and most are worthless and arent even worth finishing,basically the land is the only thing of value that it sits on ,the house is worthless like parting out an old automobile,welcome to the third world brought to you by 1 rogue leader ,and everyone thought democracy was invincable
If the rates go up, prices will drop degating any rate increase.
Don’t forget to also take into account interest rates around 5% on a 30yr fixed rate right now. 12-24 months from now a higher interest rate would cancel out any depreciation; so its an interest rate gamble whether to wait or buy now. But if your a cash buyer – then yes wait.
the media is important because democracy is important and people need to know what is really going on ?Looking only at the civilian population of 237 Million, with 138 Million working that’s a 41% overall not employed rate where 99 Million eligible workers are not employed. Consider that the 138 Million are supporting the US population of 305 Million.hyperinflation,tax revenues disapearing ,some recovery ?this is not what the media is telling you ,so what about democracy ?
@deathx45 awesome
great video, thank u for posting this.
Thank your for the wondeful info MrAlanKendall
I saw a 3 bedroom townhome in Carson for 65,000 and three others for under 100,000. So some prices are really low. The banks want a lot of down payment and in these cases all cash, so I am waiting until the second half of 2011 so that softer prices will push prices down in the South Bay and Banks will then be willing to take my offers. If I put all my money in one property then I will run out of cash. If I wait and I can get in with little down, I will buy more than one property.