Housing Prices Reaching A Bottom?
One economist thinks they are in certain parts of the US.
“Though Mr. Lawler was among the more bearish of housing economists when the market was still bubbling, he recently has been arguing that prices for low- and mid-range homes are stabilizing in many parts of the country–an idea that enrages the many bloggers who cherish the view that we haven’t seen anythinng yet and that the true housing Armageddon lies ahead.”
I would agree with this. I am not sure if South Florida is because there still are many more foreclosures that will be coming on the market. However, there are bidding wars going on down here that will help keep prices from dropping too much if at all. The Sun-Sentinel just had an article on this on July 18, 2009.
An even more important part as to why we are approaching a bottom is because the gap between rent and mortgage payments is closing in just as I mentioned in one of my posts the other day. The Wall Street Journal touched on this today:
“For Amy Musial, who manages a Starbucks in Sacramento buying a house became “a no-brainer” this spring once she and her husband realized that their monthly payments would be slightly lower than the rent they had been paying on a two-bedroom apartment. They paid about $229,000 for a three-bedroom house that had been through a foreclosure. Several years ago, the same house could have sold for more than $350,000, estimates Shelley Hescock, the real-estate agent who represented the Musials.”