High energy prices basically killed nascent recoveries in 2010 and 2011.
This being said, real estate in my home state is as low as it has ever been. Looking at a 2-family probate sale selling for $145k (probably will go for $135 since it’s been sitting for a month), both units rent for $950/mo, taxes are $400/mo, utilities are $250/mo avg, insurance is $150/mo. Not in the toniest town, but within walking distance to the center of a VERY nice downtown.
Almost 10% pro forma right there, and not out in “lizardland” or whatever the East Coast equivalent is to it. The current market there is basically the equivalent of San Diego ca. late 2010. Which makes sense, because the foreclosure process is judicial and takes two years longer on average than in CA – foreclosures are just hitting the market now big-time.[/quote]
With the super low rates, I don’t see housing prices moving downward in a significant way. And the fed already said they will throw everything they got… If rates keep low or keep plummeting, there’s plenty of people doing ok who would pick things up at market price, and there’s enough competition to do it…people like me who would refinance to oblivion to buy other things…because I can…For example, if Fed offered close to 0% finance on a 15 year or 30 year… I would definitely consider buying a larger home(s) in CarmelV and not be in a hurry to sell my existing. And we’re not close to 0% financing yet…And when it comes to the financial pecking order. There’s plenty of people who are even in better shape than me.
