The super red hot real estate market of years ago has slowed down. We are now looking at declining prices not the double digit growth we were used to.
In fact, real estate rose faster than the price of gold, this means that they are inflated and cannot go up a lot more near term, on the other hand future gold prices still have a ways to go.
People worry, "Will I be able to sell my home?" The answer is yes, but not at the price you wanted, try a lot less. As home sales decline the demand will eventually catch up with the supply, but for now we have an over supply of houses due to investors that pour billions into an already oversaturated market. This caused prices to drop.
A few years ago, real estate seemed a solid bet, but now house prices have crashed, in some areas in South Florida dropping as much as 50%! This will alert investors to the reality of REAL estate. It can be a REAL pain when prices come down.
Typically prices come down a lot faster than they go up. Witness the amount of foreclosures that we now see. Banks are grabbing homes.
Expect a lot of empty houses in the future. Although people will still buy houses in the future - with interest rates going up, the numbers will decline and the houses that sell will be the more "affordable" ones not the mega mansions that sit empty.
I predict that we will see prices go back up after we absorb the glut of foreclosures and bank repos, but it will be a while before we see a market as robust as that of five years ago.
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