I am terrified of holding real estate. Sometimes I worry I will have a nightmare, where I am owner of a house in San Diego, and the prices keep falling and I can’t find a buyer. This scares the heck out of me.
Right now, I cannot picture when the tide will turn, and I will want to own real estate again. I think it will be a long long time, and when I finally do, it will be a time of regular rising appreciation, like we had in the past.
Houses will no longer be a cash machine. That was a once-in-a-lifetime opportunity, getting rich flipping homes. I doubt that kind of liquidity bubble will ever be allowed to happen again. We’re going to see much tigher lending standards and other government intervention to prevent another collapse of middle American dreams and fortunes.
